Auto Monitor - January 2011

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

Auto Monitor

Vol. 11 No. 01

1-31 January 2011 Combined Issue

w w w. a u to m o n i to r. co . i n

164 Pages

`50/-

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

Auto Monitor

Vol. 11 No. 01

1-31 January 2011 Combined Issue

w w w. a u to m o n i to r. co . i n

164 Pages

` 50/-

Contents

1 2 3 4 5 6 7 8 9 10

Ten major developments in the past decade We profi le key policy initiatives on the reguatory, market and technolgy front, which had major impact on the auto sector ..................... 14-20

Ten defining vehicles of the decade The past decade saw some of the most commercially successful vehicles launched in the country. We profi le these category defi ning vehicles ..................................... 23-30

Ten most influential personalities of the decade The past decade winessed industry leaders breaking new grounds in the domestic and international arena. We profi le them and their exploits.. ................................................................................. 32-35

Ten major future opportunities India is witnessing unprecented economic growth with automotive sector being a major beneficiary. We identify ten major unfolding opportunities ................................. 38-42

Ten key challenges Rapid growth poses numerous challenges for any industry. We chalk out the major challenges, current and future ones, that would have to be addressed by the auto industry in coming years . ......................................... 48-52

Ten defining technological breakthroughs Competition and growth lead to technological evolution.

We identify the major technological breakthroughs that have shaped automotive sector in the past decade....... 62-68

Ten largest automobile manufacturing facilities Growing market necessitates manufacturing on a bigger scale to achieve production economies. We identify top automobile manufacturing facilities in India ............................................................................. 76-81

Top ten fastest growing auto component manufacturers Auto component manufacturers achieved global scale during the past decade. We identify the fastest growing auto component manufacturers...................................... 86-91

Top ten automobile dealers

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Top ten emerging markets With Indian automotive industry taking a centre-stage globally, we identify the top ten emerging markets for the Indian auto industry in coming years ......................... 110-114

In a unique and one of its kind initiatives, we identify the most promising automobile dealers in India across vehicle categories ......................................................................... 98-104

Illustration: Sachin Pandit

VISIT, INDIA’S BIGGEST TRADE FAIR ON ENGINEERING & MANUFACTURING CHENNAI- 11-13 MAR 2011 Chennai Trade centre, Nandambakkam

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1 - 31 January 2011

V IE W P O IN T S Auto industry needs skills strategy to stay competitive Dilip Chenoy, Chief Executive Officer & Managing Director, National Skill Development Corporation ....................................54

123

Auto Supply Chain @ Cross Roads: Need for Full Value Supply Suneel Aiyar, Associate Director-Consulting (Supply Chain), PricewaterhouseCoopers ...............................................................56

Ruia Group looking for global play in automotive business

Lotus Range Extender engine concept Jamie Turner, Chief Engineer, Powertrain Research, Lotus Engineering...........................................................................70

Ruia Group is making rapid strides towards its objective of becoming a global automotive supplier

Green Paintshop: Efficient technology for automobile painting Dr Ing Pavel Svejda, Researcher, Dürr Systems .............................................................84

IN T E R V IE W S ‘Implementation of GST is likely to address systemic inefficiencies’ Dr Pawan Goenka, President-Automotive & Farm Equipment Sectors, Mahindra & Mahindra and President, SIAM .............124

‘Much of the Indian rubber stocks are only on paper’ Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers’ Association ...........................124

123

NK Minda Group to diversify into wheels, filtration systems NK Minda Group forays into wheels and fi ltration systems businesses in JVs with Japan’s Kosei Aluminium and Toyo Roki

‘There is unlikely to be a dominant fuel technology for CVs’ Craig A Barnes, Chief Executive Officer & Managing Director- CRTI and Chief Technical Officer, Cummins India Operations ........128

128

Cooper Corporation working on 1-1.5 tonne CV, evaluating acquisitions Cooper Corporation is working on 1 -1.5 tonne CV platform for goods and passenger carrier applications

A LY S I S EWS & AN NEWS, VI OMOTIVE

or Auto Monit AZIN O. 1 MAG INDIA’S N

T E FOR AU

164 Pages

Vol. 11 No. 01

1-31 January

d Issue

www.au tomoni

tor.co.i n

2011 Combine

`50/-

142

TD Bank to buy Chrysler Financial for $6.3 billion Canada’s TD Bank has agreed to acquire Chrysler Financial in a $6.3 billion deal infusing a new life in the auto lender

156-160 The Other Side

Cover design: Varuna Naik

Vijay Krishan Mehta, Chairman and Managing Director, Clutch Auto Adil Mohamed, Senior Business Development Manager (Automotive) – India, Australian Government/Australian Trade Commission

EDITORIAL A milestone achieved A

uto Monitor completed a decade in print last month. I can vouch for the fact that it has been a fascinating journey for every team member, past and present ones. The decade gone by has been equally exciting for the automotive sector in India.

With unwavering support from industry thought leaders, Auto Monitor has grown from strength to strength.

And so has the automotive industry, aided by policy support, tailor-made incentives, leapfrogging investments, burgeoning demand and a plethora of choices. India emerged as the second fastest growing automobile market during the past decade and the most promising automobile manufacturing hub for compact cars to feed domestic and international demand.

Total automobile production in India has grown three-fold over the past decade from 5.31 million units in 2001-02 to 14.05 million units in 2009-10. Today, around 32,000 vehicles are sold daily by an estimated 6,100 odd automobile dealers across vehicle categories around the country. Indeed the decade gone by has been the most exciting one for everyone associated with the industry. These are exciting times.

Looking forward the industry is facing challenges on multiple fronts. Though shortage of skilled manpower is often cited is the most critical challenge, the industry is yet to address other equally critical issues. Export competitiveness, vehicle distribution, supplier reliability and focused approach to manufacturing and processes are major issues requiring attention.

In my recent interaction with the head of a leading vehicle manufacturer, one aspect of the automotive growth story became amply clear.

Major systemic inefficiencies in form of cascading duties and levies have the potential to derail the export competitiveness of the automobile industry. Manufacturers would be better off exporting from, say Thailand or South Korea rather than India due to higher cost of manufacturing and transportation of passenger vehicles.

Design & Photography Chief Photographer Mexy Xavier Asst. Art Director Varuna Naik Senior Designer Ganesh Patere Scanning & Colour Correction Ravikumar Potdar, Ravi Salian, Sanjay Shelar Production Team Dnyaneshwar Goythale, Vikas Bobhate, Pravin Koyande Photographer Neha Mithbawkar, Joshua Navalkar

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Happy Reading!

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- Abhishek Parekh

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Auto Monitor

Editorial Team Features Editor Shobha Mathur Principal Correspondent Abhishek Parekh Senior Correspondent Nabeel A Khan Correspondent Shambhavi Anand Contributing Editors Sirish Chandran Bertrand D’Souza

Efforts at developing India as a ‘small’ car hub could remain just that: ‘efforts’. Compare the scenario on passenger vehicle exports from India to another smaller but promising production hub-Thailand.

Thailand’s Automotive Industry Master Plan 2007-2011 (think India’s Automotive Mission Plan!), chalked out around the middle of last decade, set a production target of 1.8 million units of passenger cars and pick-up trucks in Thailand by 2011. Of these, eight lakh units were meant for exports. Generous incentives were doled out to attract investments into the Thai automotive sector during last decade including tax breaks, easy machinery imports, work permits and proactive measures like Free Trade Agreements.

The result: vehicle exports from Thailand for eleven months upto November 2010 touched 825,040 units, according to the Thai Automotive Industry Association data. Talk of result oriented approach at macro level.

But this is not to take away any credit from the achievements of Indian automotive sector. It has made rapid strides over the past decade. Future looks equally promising.

We (Auto Monitor team) consulted industry leaders to put the past decade in perspective.

Major developments, future opportunities and key challenges were identified to provide you with a clear picture of the eventful decade that was.

We will continue to serve you with most insightful news, analysis and perspective on the auto sector in the coming years.

10

Auto Monitor

INTRODUCTION

As Auto Monitor celebrates its tenth anniversary and stands at the threshold of a new dawn, a new decade, a new beginning with renewed fervour, hope and optimism, it is time to reflect.

The past decade was witness to much fanfare in terms of glitzy model launches, momentous policy decisions of the Government, innovations in new technologies as well as trials and tribulations. These catapulted India to the global centre-stage and the country gained a foothold as an emerging automotive hub.

So we at Auto Monitor decided to capture the nostalgic memories of the bygone era and walk down memory lane with our panel of experts, comprising industry captains and analysts.

Our eminent panellists, who took out time from their busy schedules, guided us in identifying important milestones of the decade 2001-2010, for penning down ‘A Decade in Perspective’.

While drawing up the highlights of the decade, we asked our panellists, what were the drivers for their selection process? And this is what they said: Director General of the Society of Indian Automobile Manufacturers, Vishnu Mathur said that while the development phase commenced in the 1990s with OE manufacturers entering the country, the real potential of growth unfolded during the 2000s. Initiatives were undertaken in component development and its localisation, outsourcing for international markets besides a vigorous quality and production drive.

This thought was reiterated by Executive Director of Automotive Component Manufacturers Association of India (ACMA), Vinnie Mehta who remarked that the quality drive to meet global standards of OE manufacturers did not remain limited to mundane Total Productivity Maintenance or Kaizen processes, but companies strived to win the Japanese Deming Award. ‘Japanese quality improvement processes became basic and integral to the component industry during the last ten years, a reflection of the performance of the industry,’ he added.

‘The fi rst fully indigenised platform passenger car, the Tata Indica 2000 with multi-point fuel injection petrol engine was launched at the start of the decade. This was followed by the Mahindra Scorpio and the low cost Tata Nano that brought down development costs,’ elaborated Mathur.

Further, Indian OE manufacturers strengthened their global footprint and the emission and fuel roadmap was laid down, ushering in alternative fuel options as well as environment

1 - 31 January 2011

friendly technologies. India developed as a hub for small cars, with serious inroads made into export markets by the two major carmakers in India, namely Hyundai Motor India and Maruti Suzuki, our experts panel said .

‘The last decade was witness to the rollout of about 100 basic passenger car models, 300 variants and 500 sub-variants, paring up consumer choices. Component duties came down to 10-7.5 percent from the earlier levels of 35 percent. For the fi rst time in this decade, trade agreements were inked with Thailand, Japan and Singapore expanding the liberalisation process,’ said Mathur.

According to Chairman, Rane Engine Valve, L Ganesh, Tata Motors became a global player and a huge growth was witnessed in the two-wheeler industry as Hero Honda catapulted to the top two-wheeler maker in the world. ‘The quality drive in the component sector with a focus on localisation and preparedness to participate in global opportunities brought more global manufacturers into the country,’ he added. However, Ganesh felt that dumping of Chinese goods into India could put a spanner in the growth of the component sector going forward, though political stability in the country would harness more opportunities for the sector.

According to Head, Crisil Research, Manoj Mohta, The National Automotive Testing and R&D Infrastructure Project with its research and development and testing facilities established during the last decade, would go a long way in fulfi lling India’s long-term vision of evolving as an automotive hub.

‘The decade saw the innovation of the ultra small car, the Tata Nano that became a trendsetter and triggered off the race for a new genre of small cars globally,’ was the opinion of Automotive Practice Leader, PwC India, Abdul Majeed. According to him, the Indian automotive industry became integrated with the international market, shoring up R&D spends and proving a game-changer for the two emerging economies of India and China.

Our panel members were unanimous in their opinion that coming decade would bring with it, opportunities and challenges of different varieties and proportions. But automotive sector in India is set to scale greater heights with focused policy framework, market readiness and hunger for growth among manufacturers both Indian and overseas.

Contd. on P118

12

Auto Monitor

EXPERT PANEL Vishnu Mathur, Director General, Society of Indian Automobile Manufacturers

Vishnu Mathur took over as Director General, Society of Indian Automobile Manufacturers (SIAM) last year. He has over sixteen years of experience in various capacities in the automotive sector in India and abroad. He graduated from Delhi University and joined the Automotive Component Manufacturers Association in 1994 after working in CII from 1980. As Executive Director at the ACMA, he has been involved in the development of the Automotive Mission Plan and is also a member of various committees related to the automotive industry. His work at the ACMA included consensus building within industry and promoting the growth and development of the industry. He succeeded Dilip Chenoy, who after a successful stint with the SIAM, moved on to takeover as the Managing Director and Chief Executive Officer, National Skill Development Corporation (NSDC).

Vinnie Mehta, Executive Director, Automotive Component Manufacturers Association Vinnie Mehta took over as the Executive Di rector, Automot ive Component Manufacturers Association (ACMA) in July 2010. He is an Electrical Engineer from Institute of Technology, Banaras Hindu University (ITBHU). He has completed his Masters in Business Administration (MBA) from Faculty of Management Studies (FMS), University of Delhi and a Masters in International Trade from the Indian Institute of Foreign Trade (IIFT). Prior to joining the ACMA, he was heading the Manufacturers’ Association for Information Technology (MAIT), the apex body of the IT Industry in India, for around 11 years. He had been actively involved in setting the direction and the policy framework for the growth and development of the IT Industry in the country. He has worked on a number of national and international assignments of eminence.

L Ganesh, Chairman and Managing Director, Rane Engine Valve L Ganesh, 55, took over as the Chairman and Managing Director, Rane Engine Valve during in teh early part of the last decade.

L Ganesh, 53, graduated from the Madras University and is an Associate Member of Institute of Chartered Accountants of India. He obtained a Masters degree in Business Administration from the Pennsylvania State University (US). He joined as a Management Trainee in Rane Engine Valve in 1978. He held various key

1 - 31 January 2011

positions like Commercial Manager, General Manager, Joint Managing Director and in 1990s, he become Managing Director of REVL. He is also closely involved in management of other companies in Rane Group and has 29 years of experience in the automotive sector in Indian and overseas. He has been an articulate spokesperson for the automotive industry through his involvement with various bodies. He has served as the past President of the Automotive Component Manufacturers Association of India and also as the President of the Madras Management Association. He was the Chairman of the Confederation of Indian Industry (CII), Southern Region. He is widely travelled and a keen player of cricket and tennis. His reading interests are varied and include philosophy and general management. He is married and has a daughter and a son.

Abdul Majeed, Partner and Leader, PricewaterhouseCoopers Abdu l Majeed, P a r t n e r, PricewaterhouseCoopers is part of the Assurance Practice in Chennai and has over 17 years of professional experience.

He has worked with PwC-Middle East fi rms for six years with large multinational audit engagements. His area of work has been primarily related to the automotive and automotive component industry segment both in India and overseas. He has extensive experience in supervision of large and medium size multinational and multilocational engagements. Majeed is currently the Leader of PwC’s automotive practice group in India. He has also worked very closely with the PwC’s US automotive practice group.

He shares his knowledge on the Indian automotive industry to assist PwC Global teams to carry out the automotive related engagements. Abdul is a member of the Institute of Chartered Accountants of India.

Manoj Mohta, Head–Research, Credit Rating & Information Services India Manoj Mohta, Head, CRISIL Research is a specialist in the area of industry research, fi nancial analysis and forecasting. He is part of the customised and industry research wing of CRISIL Research. He has over 14 years experience and currently heads a team of twenty analysts and three senior analysts. In his earlier stint, he had worked as Head Financial Research at a venture capital funded fi rm, focusing on providing fi nancial research services for global investment bankers, hedge fund and corporate clients. He holds a Master of Business Administration (MBA) degree from Northeastern University, Boston, USA and a Bachelor of Engineering degree from Roorkee University, India. He has extensive experience in analysing the automobile, metals, banking and telecommunications sectors and has been leading research initiatives across diverse sectors.

Developments of the Decade 14

Auto Monitor

T

he automobile sector witnessed radical changes in its manufacturing processes and functioning in the post liberalisation era. However, it was the following decade, 2001 to 2010 that catapulted the industry to the centre-stage of the global map. As new awareness about product quality and adherence to international standards permeated the Indian industry, the automobile sector gravitated towards the ‘small’ car manufacturing hub. The process was further facilitated with the Union Government pitching in with policy decisions to facilitate the sector’s growth.

Today, at the close of the decade, most of the global manufacturers have established their manufacturing bases in India with the ‘Made in India’ brand being internationally recognised.

With the growing economy boosting the sector’s fortunes, India is positioned as one of the two major emerging markets for vehicles in the world, after China.

As the sector embarks on its next level of growth in the coming decade, it’s time to retrospect and walk down memory lane to recapture some of the significant developments of the years gone past.

Auto Fuel Policy At the onset of the last decade, India lacked a comprehensive Auto Fuel Policy. As new vehicle launches lead to road congestion and vehicular emissions, curtailing pollutants and improving

DEVELOPMENTS OF THE DECADE

air quality became a paramount concern.

The National Auto Fuel Policy was announced by the Ministry of Petroleum and Natural Gas in October 2003. It broadly, laid down a roadmap for achieving various vehicular emission norms over a period of time and corresponding fuel quality upgradation requirements for 11 major cities to begin with.

For passenger cars, light commercial vehicles and heavy-duty diesel vehicles, Bharat Stage II was enforced in 11 major cities from April 2003 and its Euro III equivalent came into force by April 2005 and subsequently Euro IV equivalent was implemented in April, 2010. For the rest of the country, Bharat Stage II was enforced from April 2005 and Euro III equivalent from April, 2010. In Delhi, Mumbai, Kolkata and Chennai, Bharat Stage II emission norms were introduced in 2000 and 2001.

For two and three-wheelers, Bharat Stage II was enforced from April 2005 and Bharat Stage III by April 2008 but not later than April 2010. The tighter emission norms were meant to be implemented on newly sold vehicles.

While the policy did not recommend any particular fuel or technology for arriving at the targeted emission norms, it took into account security of supplies and existing logistics; it suggested that liquid fuels should remain as main auto fuels throughout the country and that the use of CNG/LPG be encouraged in cit-

P Chidambaram reduced the excise duty on ‘small’ cars from 24 to 12 percent giving impetus to growth

ies affected by higher pollution levels to offer vehicle owners, options of fuel and technology combinations. The policy also recommended measures for improving the existing mechanism of pollution checks of in-use vehicles, retro-fitting them with new engines or emission control devices.

The investments to reach vehicular technology and fuel quality of Euro III equivalent levels pan India, was estimated to be in the range of `50,000 crore to `60,000 crore.

As a run-up to the Policy formulation, an Expert Committee had been set up under the Chairmanship of the Director General of the Council of Scientific and Industrial Research, Dr RA Mashelkar in September 2001.

It was to suggest an Auto Fuel Policy for India, along with a

roadmap for its implementation as also suitable auto fuels, automobile technologies and fiscal measures. The Policy had to undergo periodic revisions every five years to allow amendments in terms of technological and other changes.

Talking about the implementation of the Policy, Head, Research, Anagram Stock Broking, Avinash Gorakshakar said that the oil marketing companies had not worked out a definitive plan with clear deadlines for making available the requisite grade and quality of Euro IV emission compliant auto fuel nor had they fi nalised its pricing.

Moreover, he pointed out that while petrol had been de-regulated, diesel still continued to be a regulated fuel, entangled in political pressure, as its pricing would directly impact the elec-

1 - 31 January 2011

toral fortunes of the government, being a mass product. Hence, the Centre was still evaluating the feasibility of de-regulating diesel in the light of rising crude prices that had a cascading effect on both fuels.

In terms of two-wheelers, Gorakshakar admitted that major manufacturers like Bajaj, TVS and Hero Honda had already invested in Bharat Stage III compliant products that were boosting demand for new two-wheelers.

In terms of commercial vehicles (CV) and passenger cars, manufacturers had to invest large sums on transiting to the new emission norms. Hence, they resorted to price hikes of vehicles that hurt the consumers.

G or a k sh a k a r sug ge st s allowing a tax write-off to manufacturers for this transition, similar to the one on R&D announced in the last Union Budget 2010-11. Finance Minister Pranab Mukherjee had raised the weighted tax deduction to 200 percent on expenditure incurred on in-house research and development activities by a company from the existing 150 percent level.

NATRiP One of the most significant developments of the decade was the establishment of the National Automotive Testing and R&D Infrastructure Project (NATRiP) for providing comprehensive homologation, product testing

Contd. on P16

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Auto Monitor

Contd. from P14 and validation facility for vehicles and auto components.

It was for the fi rst time that such an ambitious testing and validation programme had been visualised for the country.

NATRiP was to foster global competencies for generic research and development to catapult India into the league-of-nations with its automotive excellence.

The Union Government, state governments and the automotive industry joined hands in this initiative.

The NATRiP was envisaged with an investment of `1,718 crore for setting up automotive testing and homologation centres at the three auto hubs of Manesar in Haryana, at Oragadam in Chennai, Pune and Ahmednagar.

Field tracks for agricultural tractors and off-the-road vehicles with an accident data analysis and specialized driving training centre was to be built at Rae Bareilly in Uttar Pradesh, testing tracks were to be located at Indore in Madhya Pradesh with an inuse vehicle management centre, with a National Specialized Hill Area Driving Training Centre

DEVELOPMENTS OF THE DECADE

at Dholchora, Assam and an Inspection and Maintenance Station for in-use vehicles and Mechanics Institute at Jaffi rband in Assam. The Centre at Assam would be India’s fi rst demonstrative facility of its kind to be replicated across various states once the system was fully implemented in the country.

The International Centre for Automotive Technology at Manesar would be one of the most modern automotive technical centres in the Asian region by 2011.

The National Automotive Test Tracks would be a world-class proving ground with digital testing infrastructure capable of sensing fi ne nuances of the automobile. It would house several varieties of surface terrains to test vehicles.

The Automotive Research Association of India at Pune that carries out 90 percent of the country’s homologation work after upgradation under NATRiP would be at par with global technical centres. The Vehicles Research and Development Establishment at Ahmednagar would match mandatory devel-

1 - 31 January 2011

a large capital expenditure involved unless compensated

by OE manufacturers. Moreover, OEMs announced annual price cuts on components as they pared up their volumes and demanded economies of scale on components dictating a ‘take it or leave it policy’, he explained. He suggested fi nancial incentives and tax write-offs where necessary for component makers to promote investments in technology.

Quality and Production Drive in Component Sector

opmental testing requirements globally by 2015.

The Global Automotive Research Centre (GARC) at Oragadam, Chennai would sport test facilities to conduct a full spectrum of homologation and performance testing of vehicles spanning two and three-wheelers as well as heavy commercial vehicles (HCVs). It would also house the Centre of Excellence for Passive Safety, Electromagnetic Compatibility and Infotronics.

According to Head, Crisil Research, Manoj Mohta, NATRiP is being developed according to global standards. ‘Testing facilities are required to meet the growing needs of new model launches by vehicle manufacturers. It will provide back-end support to the industry in terms of R&D needs and enable the industry to become self-sufficient. This will go a long way in ensuring that India becomes a global automotive hub,’ he said.

Mohta felt that Indian OEMs had to make royalty payments to technology partners. Growth in the market and increasing number of model launches were resulting in higher royalty payments. NATRiP facilities would support the development of models in India and hence, reduce the payout on account of royalty.

Automotive Mission Plan The Ministry of Heav y Industries and Public Enterprises took a major stride by declaring the automobile industry as a sunrise industry and announcing the Automotive Mission Plan (AMP) 2006-2016, to make India a global automotive hub.

The AMP envisions developing India as the destination of

choice for design and manufacture of automobiles and auto components with output reaching $145 billion, and doubling its contribution to India’s GDP to 10 percent besides acting as a catalyst to generate additional employment to 25 million people by 2016. More than 60 percent of the additional 25 million jobs to be created under the AMP would be in the skilled category. Under the AMP, the automotive industry is expected to produce more than four million passenger cars, 17 million two wheelers and one million CVs by 2016.

Director General of the Society of Indian Automobile Manufacturers (SIAM) Vishnu Mathur remarked that the AMP was the fi rst joining of hands between the Union Government and the industry in a fi rst of its kind consultative process for writing down a vision for 2016.

‘A number of initiatives fructified from it including the NATRiP with around `1,800 crore funding and the lowering of excise duties for small cars. In fact, the overall trade and tariff policy was guided by the AMP as was fiscal and R&D policy like never before. It turned the focus on India’s development as a manufacturing hub. It also identified a major Automotive Skill Development Council for developing skills for the sector that is a major concern today,’ added Mathur.

Talking about the AMP, Gorakshakar said that though the growth under the Plan was encouraging, the implementation was a little delayed and should be in letter and spirit.

Moreover, sudden implementations placed margin pressure on small players as there was

The $ 26 billion auto component sector in India has been embracing the 5-S; 7-W, Kaizen, Total Quality Management, Total Productivity Maintenance, 6 Sigma processes as well as lean manufacturing for upgrading manufacturing processes to international standards. These production and quality drives being used universally across the sector facilitate quality in production, cut losses and flab, enable maintenance of plant and machinery and ensure profit management at the end of the day.

E xecut ive Director of A ut om ot i v e C om p one nt Ma nufacturers Association (ACMA) Vinnie Mehta said that since the last decade, significant focus on improvement in product quality had been made by the auto component sector in order to meet world-class supply needs of global OEMs in the country.

These had not remained limited to basic TPM or Kaizen processes but people had strived to win the Japanese Deming award with about 11 companies winning the award with another 15 winning the TPM award besides several other awards.

All 600 plus members in ACMA are ISO certified with 560 being ISO 9000 certified that pertains to basic quality and 200 companies ISO 14000 certified for environmental compliance. ‘Quality practices like six sigma and lean manufacturing are now taken for granted with companies aspiring to a higher level. All good manufacturing practices focus on producing minimum waste, good team work, and now these practices are an integral part of the manufacturing lifecycle,’ Mehta elaborated.

Recounting the Japanese quality movement brought into India by Maruti Suzuki and Hero Honda in the early 1980s, he said the supplier base development happened in line with customer’s demands for the OE products.

Mehta said that in the next decade, the component sector needed to grow in other parameters in terms of fi nancial health, equivalent of credit ratings and governing practices. Component sourcing by global OEMs also aided the quality drive process among component suppliers.

JNNURM To prop up the commercial vehicle sector during the economic slowdown in 2008-09, the Centre announced the stimulus package under the aegis of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for generating about `4,000 crore business for supporting the sector.

Under the scheme, states were to be provided assistance as a one-time measure for purchase of over 10,000 buses for the urban transport system. The funding, to

Contd. on P18

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DEVELOPMENTS OF THE DECADE

Contd. from P16 commence after approval of the Urban Development Ministry, was meant exclusively for city buses and the bus rapid transit system (BRTS) for all the cities under the JNNURM programme.

The programme besides helping the CV industry was meant to facilitate improvement of the public transport system in 63 cities (later 65) where JNNURM was being implemented. States were required to set up a city specific body for controlling and managing the city bus service to ensure that the buses procured under the JNNURM scheme were utilised exclusively for the urban transport system. Buses purchased by states under the scheme were to display the JNNURM logo prominently with 20 percent of the buses to be low-floor. While the government allowed public private partnerships for procuring buses under the scheme, ownership of buses would remain with the urban local bodies.

JNNURM programme provided stimulus for public transportation spending leading to recovery in the bus market

In Delhi, the JNNURM spearheaded the discontinuation of the killer Blue Line buses that met with maximum accidents on the roads. The existing fleet of Blue Lines then was 3,300 and the plan was to replace all Blue Line buses by March 2010.

Many of the bus fleet profi les had undergone a change as State Transport Undertakings with

ministerial support in funding, had opted for fleet replacements under the JNNURM program.

These buses are spacious, have low f loors and provide better ergonomics to commuters, facilitating a shift in preference towards public transport. This has helped in managing the burden of passenger traffic on city infrastructure, said Mohta.

Named after the fi rst Prime Minister of free India, the Jawaharlal Nehru National Urban Renewal Mission was initially a massive city modernisation drive launched by the Centre in December 2005. It envisaged an investment of over $ 20 billion over seven years starting 2005-06 and targeting improvement of the quality of life and infrastructure in cities including construction of roads, bridges, drainage systems, water and sewerage treatment plants.

A total of 65 cities were eligible provided they had elected bodies in position. About 13 specific reforms were mandatory for states and municipalities before funds could be accessed.

National Skill Development Corporation T he Nat ion a l Sk i l l Development Cor porat ion (NSDC) is one of its kind, public private partnership in India for promoting skill development by

1 - 31 January 2011

creation of large, scalable, forprofit vocational institutions. Its mandate is to enable support systems such as quality assurance, information systems and train the trainer academies either directly or through partnerships.

NSDC was set up as part of a national skill development mission to fulfi l the growing need in the country for skilled manpower across 21 sectors under its purview and to narrow the existing gap between the demand and supply of skill sets.

The Finance Minister while announcing the formation of the NSDC in his Budget Speech in 2008-09 planned to garner about `15,000 crore as capital from governments, the public sector and private sector and bilateral and multilateral sources.

The automotive industry faces a challenge in terms of developing human resource skills with problems being twofold. One, India needs to train manpower to cater to the higher employment demand from the sector and secondly, as India embraces global technology, skill enhancement becomes mandatory to improve technology and productivity.

SIAM has extended support by contributing to the equity of the National Skills Development Corporation and plans to actively support the initiative under the NSDC. ‘The Automotive Skills Development Council being set up by the industry with the active support of Government and the NSDC will be the fi rst such sectoral skills development initiative,’ added Mathur.

It is estimated that by 2022, the automotive industry would employ an incremental 35 million people. Indirect employment would mainly be in the service sector spanning auto fi nance, auto insurance and employment, generated for drivers. Direct employment in turn, would include employment at OEMs, component suppliers and raw material supplier’s workplaces.

A recent NSDC report found that with the advent of foreign players in the OEM space, personnel currently employed by OEM’s and Tier I suppliers were to be ‘industry-ready’ and were being attracted by the foreign players into their fold. Hence, a major challenge being faced by them was retaining their skilled employees, leading to increasing cost of human resources.

According to Automotive Practice Leader, PwC India, Abdul Majeed NSDC is currently not playing a very significant role and needs to be linked to the educational curriculum to become competitive.

Economic Slowdown One of the worst economic recessions that took the world by storm during 2008-09 had a trickledown effect in India in the form of a slowdown during the decade. The downturn drastically impacted the fortunes of the commercial vehicle segment in India while the passenger vehicle segment saw a marginal growth.

Two-wheelers however grew over a low base of the previous year in the domestic market.

However, passenger vehicle exports fared well boosted by scrappage schemes announced by the Governments of the European Union that promoted exchange of older vehicles with the compact fuel-efficient cars.

A similar scheme, ‘cash for clunkers’ was announced by the US as part of a general automotive stimulus package to rid the roads

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Contd. from P18 of fuel emitting vehicles.

These incentives boosted exports of Indian carmakers with passenger vehicle exports pegged at 335,735 units in FY’09 against 218,401 units in the previous year, mainly to Europe. A drop in exports was witnessed after discontinuation of the scrappage packages during 2010-11.

In the domestic market, passenger vehicles contributed sales of 1,551,880 units in FY’09 against 1,549,882 units in the previous year. Overall, FY’09 ended with a marginal overall growth of about two percent, according to Senior Director, SIAM, Sugato Sen. Recovery in the domestic market commenced from the last two quarters of 2009 as growth in CVs picked up slowly with the government’s JNNURM scheme.

‘In the current fiscal, till date, the domestic market has grown at 30 percent while exports have grown at 34 percent. While exports in passenger vehicles

DEVELOPMENTS OF THE DECADE

have been stagnating as European economies have not fully recovered, export of CVs, two-wheelers and three-wheelers have picked up, riding on the need for these products. For instance, CV sales are growing at around 35 percent in the domestic market but exports are up at 78 percent, twowheeler exports are growing at 41 percent while in the domestic market they have grown at 28 percent. Three-wheeler exports are growing at around 80 percent while in the domestic market the growth is pegged at 18 percent,’ elaborated Sen. According to Mathur, the economic slowdown was a great learning experience as it brought the government and industry together in speedily identifying problems, suggesting appropriate measures and implementing them with equal alacrity.

‘The economic slowdown in the auto component sector was shortlived,’ admitted Mehta with the sector faring well in the last

quarter of FY’10.’ From a turnover of $ 18 billion in FY’08 and $ 18.4 billion in FY’ 09, (a flat 2 percent growth), the component sector bounced back to $ 22 billion, a 20 percent growth in FY’10 on the back of the stimulus packages by the government while Western Europe and America were still struggling to emerge out of it.

‘An important lesson learnt from it has been the need to plan capacity during upswing periods as it is a high value and technology intensive business. Moreover, the slowdown exposed the sector to managing and understanding the exigencies of the downturn and upswings,’ said Mehta.

GM Bankruptcy Once unthinkable, the largest America car manufacturer fi led for bankruptcy in June 2009 after years of losses and market share declines. This was capped by a dramatic plunge in sales despite bailout packages by the US Government.

GM planned to shed its Pontiac, Hummer, Saab and Saturn brands to shed flab besides some plants, dealerships, debt and other liabilities that it could no longer afford. The trimmed GM was to retain only four of its brands in the US market namely Chevrolet, Cadillac, GMC and Buick besides its successful overseas operations, one of which is in India.

1 - 31 January 2011

GM’s bankruptcy fi ling was the fourth largest in US history and the largest for an industrial company. The company had been saddled with $172.81 billion in debt and $82.29 billion in assets.

But recovery in the passenger car and pick up market has helped the recovery process with the company fi ling for the largest initial public offering in the US history to enable repayment of debt and recharge its growth.

Emergence of Hero Honda Hero Honda Motors put India on the global map by emerging as the world’s largest manufacturer of two-wheelers in 2001. Hero Honda retained that position till recently.

The company is a joint venture between India’s Hero Group and Honda Motor Company of Japan forged way back in 1984.

The company’s global rise gave an impetus to the growth of the two-wheeler sector in India.

It has three globally benchmarked facilities at Gurgaon and Dharuhera in Haryana and the third at Haridwar, Uttarakhand.

Hero Honda’s product range includes a variety of motorcycles that have been trendsetters with scooters introduced in 2006.

It became the fi rst company to launch the Fuel Injection Technology in Indian motorcycles, with the launch of the Glamour FI in June 2006. Hero Honda went against the grain by notching over 11 per cent growth in volume terms and over 19 percent growth in value terms.

Mehta confirmed that the Hero Honda partnership triggered the beginning of the auto revolution in two-wheelers. It was a big achievement for India as the company became the top two-wheeler manufacturer in the world operating out of India.

This created the conviction among domestic manufacturers of being able to achieve world recognition.

The company became the fi rst to cross the 25 million-unit milestone, with the Splendor introduced in 1994 becoming the world’s largest selling motorcycle to cross the five million mark.

Munjals of the Hero Group and Japan’s Honda Motors parted ways after 26-years of collaboration in December 2010. The Munjals bought out the entire 26 per cent stake of its Japanese partner in the company paving the way for Honda to directly access the Indian market and leaving the Hero Group as the majority owner of the world’s largest two-wheeler manufacturer. With the Hero Group maintaining its operational perspective over Splendor and Passion, that constitute 80 percent of the company’s sales, the future of the Hero Group seems bright.

(Compiled by Shobha Mathur)

Defining Vehicles of the Decade

1 - 31 January 2011

Tata Ace Tata Ace has changed the competitive landscape of the commercial vehicle segment in India. Priced in the range of `2.25 lakh for BS II and `2.35 lakh for BS III, Tata Ace has created a niche for itself as a dependable urban goods carrier suitable for both rural and urban use.

The four stroke indirect injection diesel engine of the mini truck can give a maximum output of 16 HP at 3,200 rpm and a maximum torque of 3.8 mkg at 2,000 rpm. The sale of the mini truck doubled from its fi rst year of launch to 70,000 plus units in 2006-07 and to nearly 90,000 units in 2008. The global slowdown, which paralysed the commercial vehicle industry, bypassed the Ace, which reported sales of 81,000 vehicles in 2008-09.

The Ace portfolio comprises the Ace, the Ace HT, the Ace Ex

DEFINING VEHICLES OF THE DECADE

and the Super Ace (one-tonne). In June 2007, Tata Motors launched the passenger version of the Ace, the Magic.

The product was designed with higher top speeds, low turning radius and sporty car like features. Tata Ace is known for being more upmarket vehicle compared with the three-wheeled goods carrier. The driver’s cabin is a separate unit with doors, which gives him a sense of being nearly at par with his counterparts handling cars.

Ace created such an impact that the competitors decided to follow suit with similar products in the goods segment. Piaggio, which had created a stir in the market with its three-wheelers, launched the four-wheeled Ape Truk. Mahindra & Mahindra came out with the Maxximo and, prior to that, another four-wheeler positioned below this value

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23

proposition called the Gio. Girish Wagh, the man widely credited with developing the Nano, is the developer of the Ace. The mini truck is now manufactured at the facility in Pantnagar, Uttarkhand.

Bajaj Pulsar Bajaj Pulsar has not only played a defi ning role in changing the fortunes of Bajaj Auto but also ushered in the much needed dynamism in motorcycle segment in India. Few products from any OEMs had had the impact that the Pulsar had on Bajaj Auto and on the motorcycle segment in India. This is remarkable for a product that was almost scrapped

by Bajaj Auto in the late nineties on the advice of management consultants but still made it to the market solely due to dogged determination and self belief on part of Rajiv Bajaj. The Pulsar was developed by the product engineering division of Bajaj Auto in association with motorcycle designer Glynn Kerr Tokyo R&D. Rajiv Bajaj squarely targeted the customers looking for more power and style in the then relatively small but rapidly evolving motorcycle segment in the late nineties and early 2000’s. Enter the Pulsar 180 and 150. The Pulsar 180 came with a 179 cc engine, delivering 14.8 bhp and 12 Nm of torque. It had a round headlamp and came with an 18-litre fuel tank: a fi rst for any Indian motorcycle. The Pulsar 150 shared the same looks but had a smaller heart: 144 cc, 12 bhp and 10 NM of torque. Both bikes were offered with optional electric start and

had a compact desig n t heme, which went down well with the masses.

In 2003, the company came with a technological upgrade for both the bikes: Digital Twin Spark Ignition (DTS-i). This was essentially an introduction of an additional spark plug on the right side of the engine, which resulted in higher power (1 bhp for both bikes) and better air-fuel combustion. With this upgraded technology, the compact design theme of the bikes was chucked for a longer wheelbase version.

In 2005, the Pulsar was upgraded with 17-inch wheels and the overall height was also lowered for better aerodynamics. Additionally, the bikes began to sport gas-fi lled shock absorbers, a fi rst for this segment. A year later the bikes were fitted with standard 1-down 4-up gearshift pattern and the 144 cc engine in

the smaller variant was replaced with a 149 cc unit. By 2007, Bajaj Auto geared up to launch India’s first fuel-injected motorcycle.

Bajaj launched the Pulsar 220 DTS Fi with 220 cc engine, fuel injection, Ducati-inspired headlamps, digital instrumentation and push button start. The bike was the fi rst to offer a rear-disc brake and did not feature the allblack design seen on the Pulsar 180. The company also launched the 200 cc version of the Pulsar with split seats and twin grab rail which was followed by the ‘entry level’ Pulsar 135 LS with innovative four valve per cylinder arrangement. Earlier, Kinetic offered the GF series in 2001 with 4-valve engines, but failed to be successful. Though this bike did

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Contd. from P23 not share the original Pulsar design cues, yet was a success due to its pricing and the brand loyalty.

The 200 cc version of the Pulsar has been discontinued and after numerous modifications to the models, the current Pulsar family comes with clip-on handlebars and a shroud on the fuel tank.

The front forks are thicker than the previous versions, endowing the bikes with great drivability.

The success of the Pulsar can be attributed to the constant upgradations given to the model over the years and keeping pace or leading the competition from the likes of Yamaha’s FZ-series, Hero Honda’s Hunk and Honda’s Unicorn Dazzler.

Honda Activa The beginning of the decade saw the entry of Honda Motorcycles & Scooters (HMSI) in

DEFINING VEHICLES OF THE DECADE

India with the Activa changing the equation in the two-wheeler segment in India and providing a dream launch pad for HMSI. Customers lapped on to the offering from the Japanese twowheeler major and

gearless scooter segment got a new lease of life. Even after a decade the Activa continues to set the benchmark in the gearless scooter segment and keep cash registers ringing for Honda.

The Activa crossed two-million sale milestone by the end of 2007 and continues to be the top selling model in the segment.

With a four-stroke, 102 cc engine from the company, the Activa soon acquired a cult status and over the years became the largest selling scooter in India. The Convenient Lift Up Independent Cover (CLIC) mechanism adopted by the company was an instant success and the hydraulic dampers at the front and rear tackled potholes with ease. The 130 mm drum brakes at the front and rear inspired confidence in the rider. The tyres offered on the Activa had tuff-up tubes

which prevented the tyres from puncturing over long distances.

The scooter offered class-leading fuel economy and a convenience and ease that every family member could enjoy.

In 2009, Honda revamped the Activa to give with a fresh face and a heart to go with. It received the all-new 110cc unit, which was doing duty on the already selling Aviator from Honda’s stable.

Honda retained the older engine for the Dio, which sold alongside the Activa in the same segment.

Despite steady competition coming in the segment, the Activa has managed to retain the top spot.

Products li ke t he Suzuki Access, the Bajaj Wave, Crystal and Mahindra,

1 - 31 January 2011

have done little to seize the Activa’s dominance and this has to do with the strong brand image for the product created by the Japanese manufacturer. Though its siblings, the Aviator and the Dio are yet to make their mark, the Activa continues to rake in volumes.

Mahindra Scorpio Mahindra developed the Scorpio in 2002 at a cost considered to be lowest for a vehicle in its class. The Scorpio is one of the few indigenously designed vehicles on the road. In the premium SUV segment Scorpio is one of the highest selling models.

Scorpio launch in 2002 redefi ned the SUV category.

The Scorpio was conceptualised and designed by the in-house integrated design and manufacturing (IDAM) team of M&M. The idea of making the Scorpio came in 1996. A dedicated team of 120 people whose average age was 47 worked on the project.

Mahindra is said to have chalked new rules of car making. Most of the major systems of Scorpio are designed directly by suppliers. The only input that Mahindra gave to suppliers who were involved in making the Scorpio was design, performance specifications and program cost. Suppliers did design & engineering, testing, validation and materials selection.

The parts were later assembled in a Mahindra plant under the Mahindra Badge. Using this method the company was able to build a new vehicle from scratch with virtually 100 percent supplier involvement. The cost incurred was in bringing the concept to reality was $120 million, including improvements to the plant.

The project took 5 years to move from concept to fi nal product.

There are four models of the Scorpio available in the market, LX, SLE, VLX and a pick-up version known as the Scorpio Getaway. The latest VLX version of Scorpio has 2.6-litre tractorderived pushrod engine making way for an all-new 2.2-litre engine designed with AVL of Austria. The long stroke engine (85mm bore, 96mm stroke) develops 121.7PS of power at 4000rpm and 280Nm of torque between 1800rpm and 2800rpm.

Mahindra Yuvraj Mahindra Yuvraj, manufactured under a contract agreement with PM Diesel of Rajkot, is the entry level tractor from M&M. The compact size and value offering of Yuvraj promises to change the tractor landscape in the country by ushering an era of low HP tractors to cater to the demand at the ‘bottom of the pyramid.’

Yuvraj 215 is apt for farmers who require an additional machine for specific applications

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Tab - AM Jan11 pg 140

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Contd. from P24 like inter-culture, power generation or water pumping. It is a fuel-efficient tractor with a haulage capacity of 1.5 tons and a speed of 25 km per hour, useful even for vegetable farmers, as well as those who own orchards or cultivate cash crops.

The Yuvraj 215 is powered by a 15 HP water cooled single cylinder engine. Mahindra entered into a contract manufacturing agreement with Deepak Diesels (DDPL), which will exclusively manufacture the Yuvraj 215 in Rajkot, as per Mahindra’s quality standards and processes. DDPL is a part of Field Marshal

DEFINING VEHICLES OF THE DECADE `50,000 less than what other cars in the segment cost. When other cars in the A2 segment — Hyundai Getz, Fiat Palio, Corsa Sail — were selling around 2,000 units a month collectively, MUL set itself a monthly target of 4,000 cars.

However, within the fi rst six months, Maruti managed to sell over 40,000 units or more than 6,600 cars a month.

Group.

The tractor, which weighs 780 kgs, is priced at ` 175,000.

The Yuvraj 215 is equipped with various features including hydraulic with AD & DC, fi rst time in tractors below 20 HP for smooth operation and better performance with draft implements and side shift gears.

Maruti Swift The Swift has been instrumental in creating a new segment with passenger car market between topline hatchback and entry level sedan. It is the fi rst model in the country to be powered by Fiat’s 1.3 litre multijet diesel engine manufactured by Maruti under a licensing arrangement.

The Swift is the first Suzuki world strategic model manufactured in Ind ia.

A group of 25 Ma r ut i Suzuki engineers worked with their counterparts in Suzuki Motor

1 - 31 January 2011

Tata Nano Tata Nano, popularly referred to as the People’s car, is a showcase of frugal engineering skills of Indian automotive industry.

It was commercially launched around July, 2009.

The car has two cylinder engine which deliver 35 PS at 5250 rpm and a torque of 48 Nm at 3000 rpm and enables the car to have a speed of 105 kmph. The Nano was created at Tata Motors’ Engineering Research Centre in Pimpri near Pune by Girish Wagh and his team of 500 odd engineers.

Corporation, Japan for developing the Swift. The engine is tuned with special emphasis on performance at varied speeds in urban driving situations and city roads.

The Swift Diesel covers 21 kms in one litre of Diesel while the Swift Petrol runs 15.9 kms to a litre of Petrol. It is loaded with features like airbags, brake assist system, electronic force distribution, antilock brakes, and energy absorbing trims. In addition, the crash tested body structure, collapsible steering column, and front seat belts with pre-tensioners and load limiters add extra safety to the car.

The Swift was priced around With a length of 3.1 metres, width of 1.5 metres and height of 1.6 metres, the Tata Nano has the smallest exterior footprint for a car in India. Its small size coupled with a turning radius of just 4 metres, makes it extremely manoeuvrable in the smallest of spaces. The three variants of the car are Tata Nano Standard, Tata Nano CX (BSII and BSIII) and Tata Nano LX (BSIII).

The high fuel efficiency and low kerb weight of 600 kg, ensures that the Tata Nano – at 101 gm / km has the lowest CO2 emission amongst cars in India.

Volvo B7R The Volvo B7R was launched in India for tourist and long distance duties in the year 2002.

The lightweight coach chassis is available with a range of bodies and has transformed the Indian bus transportation scene.

The B7R, which is available in India as 9400, has a rear engine powered by the Volvo D7, a seven litre, six-cylinder common rail diesel engine with a turbocharger and an intercooler. The Volvo B7R bus chassis is produced in Haskote, Bangalore and it has a 290 hp engine.

The rest of the powertrain is adapted to enable the engine to provide as much power as possible. There are two automatic transmissions from which to choose. Both feature an integral retarder for enhanced braking capacity. There is also a choice of two manual gearboxes to provide the best possible drivability and to harness the maximum power from the engine.

The bus which is mostly used for inter city transport in India has a total brake area of 6,865 cm² and is known for safety and durability.

The Volvo B7R has an air suspension, which compensates for the Indian road conditions. The bus comes with two air-bellows up front and four at the rear. In addition to that, there are stabilisers at the front and rear, and two double acting hydraulic telescopic shock absorbers at both ends, minimizing the tendency to roll.

The spring loading, and the

Contd. on P30

20 - 26 January 2011 Bangalore, India

15th Indian Metal-Cutting Machine Tool Exhibition With International Participation

at s u Visit 2011 X E T M I

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Contd. on P28 vehicle dynamics, of a truck chassis varies with the load it carries. The bus weighs around 16,200 kg. The body of the bus is built with tubular steel structures and is so designed that in case of a collision, the material does not implode, thus minimising injuries.

Tata World Truck -Prima Tata Motors’ World truck ‘Prima’ has been developed in South Korea and India. Tata Motors and its two subsidiaries, Tata Daewoo Commercial Vehicle Company in South Korea and the Tata Motors European Technical Centre in the UK have jointly developed the range.

It has been designed by Stile

DEFINING VEHICLES OF THE DECADE

Bertone, an Italian design house.

The individual components have been developed in collaboration with the global partners in order to utilise their expertise.

When Tata announced the launch of this product it intended to lift the face of its commercial vehicle portfolio against its global competitors like Volvo, Daimler and local competitor Ashok Leyland. What made the World truck a truly defi ning product is its design and development.

Tata Motors’ has harnessed the best of inputs and technologies in styling, engines, transmission, suspension, chassis frames, fabrication and dies from partners based in countries like Italy, Germany, Sweden, the US, Japan and South Korea.

1 - 31 January 2011

tippers, mixers and cranes for construction and mining and trucks for special applications like reefers, bulkers, and tip-trailers. The Prima range comprises about 10 major variants of multi-axle trucks, tractor-trailers, tippers, mixers and special application vehicles. The distribution of the range will be completed in phases over two years. They are all BS-III and BS-IV compliant.

The world truck prices start from around `21 lakh.

Built on a completely new platform and powered by 185-565HP engines, those with higher HP variants are being planned for The capacity of World Truck ranges from 10 to 75 tonnes gross combination weight making it suitable for a range of applications. Powertrain options stretch from 150 PS to 560 PS, with suitable engines, transmissions and axles of different makes. The world truck range has a higher power-to-weight ratio translating into faster turnaround time, better reliability and durability.

This gives the transporter higher revenue generation than usual There are tractor-trailers and multi-axle trucks for long distance transportation, rigid trucks for short distance distribution, the global markets. Tata Motors plans to kick off exports of its World Truck range from 2011-12 to countries like South Africa, Latin America and West Asia.

Toyota Innova Abrupt withdrawal of the Qualis had left a question mark on Toyota’s dominance in the multi utility vehicle space in the early 2000’s. Not only did the Qualis’s successor-the Innova- got a lukewarm reception but doubts were raised on Toyota’s ability to read the Indian market and offer suitable products. But the eventual success of Innova over the last five years has detractors eating their words. Innova has long surpassed the monthly average sales volumes that the Qualis ever achieved and sells around 5,500 units every month.

Since its launch in India in 2005, Innova has cut a niche for itself by offering the luxury of a sedan with the performance of an MPV. The MPV is a result of the Innovative International Multi-purpose Vehicle (IMV) project from Toyota Motor Corporation (TMC). There are three variants of Innova available in the market, Innova E - Innova E 2.0L Petrol, Innova E 2.5L Diesel; Innova G - Innova G1 2.0L Petrol, Innova G2 2.5L Diesel and Innova V - Innova V 2.0L Petrol, Innova V 2.5L Diesel.

The two litre four-cylinder fuel injected petrol engine, featuring the VVT-i technology, boosts the mileage and the more popular engine option; the 2.5 litre fourcylinder turbocharged common rail direct injection diesel is tuned for performance. Both the engines are mated to five speed manual transmission.

Innova got facelift in 2009, four years after its launch with additional features like automatic climate control, optitron meter with illumination control, multi information display and elegant new interior cabin colour. Passenger safety has been taken care of by features like airbags (for both driver & passenger) and Anti-lock Braking system (ABS).

(Compiled by Shambhavi Anand)

Influential Auto Personalities

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Ratan Tata Chairman, Tata Group

Ratan Tata has entrenced his place in the history as the man who dreamt and built the ‘people’s car’. He joined the Tata group in 1962 after turning down a job with IBM on the advice of JRD Tata. He was fi rst sent to Jamshedpur to work at Tata Steel. He worked on the factory floor along with other blue-collar employees, shovelling limestone and handling the blast furnaces.

Ratan Tata executed his fi rst major turnaround after joining Nelco in 1971 and making it profitable in short span of time.

Subsequently he joined the sick unit of Tatas Empress Mill, he turned it into a dividend paying company. In 1981 he was declared the Chairman of the Tata Group of Industries. In 1981, he was named Chairman of Tata Industries; the group’s other promoter company, where he was responsible for transforming it into a group strategy think-tank, and a promoter of new ventures in high technology businesses.

The Government of India honoured Tata with its second-highest civilian award, the Padma Vibhushan, in 2008. He

INFLUENTIAL AUTO PERSONALITIES

has also received honorary doctorates from several universities in India and overseas.

Ratan Tata is also associated with various committees including Member of the Prime Minister’s Council on Trade and Industry. He is also the President of the Court of the Indian Institute of Science and of the Council of Management of the Tata Institute of Fundamental Research. He also serves on the board of trustees of Cornell University and the University of Southern California. He is on the Board of Fiat SpA and Alcoa.

He is also on the international advisory boards of Mitsubishi Corporation, the American International Group, JP Morgan Chase, Rolls Royce, Temasek Holdings and the Monetary Authority of Singapore.

Baba Neelkanth Kalyani Chairman and Managing Director, Bharat Forge Baba Kalyani foresight and ability to take risk to capitalise on unfolding opportunities has made him one of the most influential auto personalities of the decade.

In the early 2000 when automotive sector was in the doldrums, he took a bet on unprecedent-

ed growth of the automobile sector and India emerging as preferred destination for sourcing auto components. He build up capacity much more than the annual turnover of his company in the early 2000 in anticipation of recovery and growth of forging business and automobile industry. His bet did pay off with Bharat Forge eventually emerging as the largest forging manufacturer in India by middle of the decade and the second largest forging manufacturer globally by the end of the decade.

The Kalyani Group has grown to occupy dominant positions in several key businesses including wheels (Kalyani Hayes Lemmerz), axles (Automotive Axles), steel (Kalyani Carpenter Steels), renewable energy & infrastructure (BF Utilities) and specialty chemicals (Hikal).

The acquisition led growth strategy has been one of the key ingredients in his success as an entrepreneur. His joint ventures with world leaders including ArvinMeritor, USA, Carpenter Technology Corporation, USA, Hayes Lemmerz, USA, FAW Corporation, China, Gerdau SA, Brazil have played a role in expanding the footprint of the Kalyani Group.

Kalyani, an MIT graduate, was recently conferred Commander First Class of the ‘Royal Order of the Polar Star’ and has won several national and international awards. He is also member of key government committees including National Manufacturing Competitiveness Council, Board of Trade and Development Council for Automobile and

Allied Industries and National Council of Confederation of Indian Industries. He is also the Chairman, Board of Governors, IIM Indore and Chairman, Board of Governors, SGGS College of Engineering & Technology, Nanded.

Dr Brijmohan Lall Munjal Chairman & W hole-time Director, Hero Group

1 - 31 January 2011

built personal bonds with vendors, dealers and employees.

Munjal has always had the knack for identifying customer preferences. In the 1980s, when all two-wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a four-stroke engine - a technology that dramatically increased fuel efficiency and reduced maintenance costs.

Jagdish Khattar

Brijmohan Lall Munjal takes the credit for putting India on the global map by making Hero Honda the largest two-wheeler manufacturer in the world in early part of the decade.

Munjal began his journey after partition in 1947, when he and his brothers relocated to Ludhiana.

The family set up a company that provided poor people with basic transport (cycles). Three decades later, as India evolved; he added a second crucial chapter - which visualised affordable and technologically superior transport to millions of middle class Indians.

Munjal and his brothers started out organised dealer networks when there was no such concept in existence. Companies just produced, and most dealers functioned like traders. Brijmohan

Former Managing Director, Maruti Suzuki Jagdish Khattar started his journey in automotive industry by joining Maruti Suzuki as Director, Marketing in 1993 after 28 long years in the civil services. In 1999, he was appointed as the second Managing Director of Maruti Udyog.

In order to fulfi ll a revised joint venture agreement that stated that the Government of India and Suzuki could take turns appointing a new Managing Director and Chairman, Khattar resigned and was immediately re-appointed as the MD, nominated by Suzuki in May 2002.

From being an IAS officer of 1965 batch to becoming

Contd. on P34

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34

Auto Monitor

INFLUENTIAL AUTO PERSONALITIES

Contd. from P32 Managing Director of Maruti Suzuki India, Jagdish Khattar has proved his mettle as a successful administrator and businessman. In his new avatar as an entrepreneur with the launch of Carnation Auto India, a multibrand sale and service network for cars, he has already begun to make his presence felt in the service industry.

With the launch of over twenty hubs across twelve cities across the country, the commencement of Car Exchange- including certified pre-owned and new car sales, workshop on wheels as well as a host of partnerships, joint ventures and tie ups with names like DC Design and Magneti Marelli, Khattar shows no sign of slowing down post Maruti.

A not so well-known fact about Khatter is that he acted in a fi lm called Gandhi Path in 1952 but the movie never got released. Film industry’s loss has been a gain for the automobile industry.

Carlos Ghosn Chairman and CEO, RenaultNissan Motors Carlos Ghosn, touted as the automobile industry’s great turnaround artists and nicknamed

as Mr Fix-It has been Chairman, President and Chief Executive Officer (CEO) of Nissan Motor since 2008. Ghosn rescued the deeply troubled companies—Renault in France, Nissan in Japan and turned them into market leaders.

Ghosn earned two engineering degrees in Paris, the fi rst from the Ecole Polytechnique in 1974 and the second from the Ecole des Mines de Paris in 1978. His career started as a management trainee with the French tyremaker Michelin. Soon he was managing a Michelin plant in Le Puy, France. He was promoted rapidly through the Michelin organisation, rising to become head of research for the development of industrial tires by the mid-1980s. Then he was asked by Michelin to return to his Brazilian

homeland and head the company’s problem-ridden operations there as chief operating officer.

He joined Nissan as its Chief Operating Officer in June 1999 and became its CEO in June 2001. In the process of scripting a turnaround at Nissan, he defied Japanese business etiquette, cut thousands of Nissan jobs, shut the fi rst of five domestic plants, and auctioned off prized assets such as Nissan’s aerospace unit. These decisions were instrumental in helping the nearly bankrupt Nissan return to profitability within a year.

Nissan Micra has been recently launched in diesel and petrol version in India. Renault-Nissan has partnered with Bajaj Auto and Ashok Leyland for a compact car and light truck respectively.

Dr Surinder Kapur Chairman & Managing Director, Sona Group Dr Surinder Kapur has been one of the early auto component suppliers to have benefited from the entry of Suzuki Motor Corporation in India by establishing a JV with the Government of India for manufacturing a small car. He entered into a series of JVs with leading Japanese auto

component manufacturers, who entered the country with Suzuki.

One of fi rst JV he struck was with Osaka based Koyo Steering Systems, a leader of steering assembly technologies. Koyo today owns a fi fth of Sona Koyo, up from a small six percent stake it picked up in 1991, and has stood alongside Kapur at the lowest point of his life, when Maruti had to recall 30,000 cars over potentially faulty steering columns in 1994.

Sona’s association with Japanese companies—others in its stable are Sona Okegawa, Sona Somic Lemforder, Sona Cold Forgings —has had a telling effect on Kapur’s management philosophy. He swears by management practices such as kaizen which emphasises small, continuous

1 - 31 January 2011

improvements, lean manufacturing techniques such as TPS. Kapur is deeply involved in India’s manufacturing quality initiatives and is currently Chairman, Confederation of Indian Industr y’s National Committee on Quality and Chairman, TPM club of India.

He is also active in India’s R&D efforts and currently heads ACMA (Automotive Component Manufacturers Association of India) Centre for Technology (ACT) to support Government funded R & D activities. He continues to be involved in a number of diverse fields and is currently active in the National Manufacturing Competitiveness Council. In the past he was Chairman - Young Presidents’ Organization India Chapter, President – ACMA and Chairman – CII, Northern Region.

Anand Mahindra Vice Chairman and Managing Director, Ma hindra and Mahindra Anand Mahindra successfully steered the Mahindra Group in a very tough phase during the late nineties and the early part of the decade when the automotive industry hit a rough patch. Bold introduction of new products to forging new joint ventures to getting key executives from global automobile majors to head key businesses within the group, he made a mark as a business leader.

A Harvard graduate, Mahindra started his innings by joining Mahindra Ugine Steel Company and became the President and Deputy Managing Director of the company in 1989. At this point of time he took various initiatives to expand the company and also started the diversification of the Mahindra Group into new realm of business like real estate development and hospitality. He took-over as Deputy Managing Director of Mahindra & Mahindra in 1991 and climbed another ladder of success to become the Managing Director in 1997. In the year 2003, he was also given the additional respon-

sibility of Vice Chairman.

Mahindra Group is considered to be among the more organised and structured group with well defi ned roles for key executives within the group companies.

Mahindra is also credited with pursuing the concept of an ‘affordable’ Sports Utility Vehicle (SUV) which crystallised in the form of the Scorpio, developed by engineering team at Mahindra on a record low budget. He has also been instrumental in bringing the ultra low cost tractor ‘Mahindra Yuvraj’ to the market by breaking new grounds in engineering and contract manufacturing. New businesses incubated by him including logistics (Mahindra Logistics), real estate (Mahindra Lifespaces), pre-owned car (Mahindra Firstchoice) are successfully established in their respective niches.

Anand Mahindra has been honoured with ‘Knight of the Order of Merit’ by the President

1 - 31 January 2011

of the French Republic and Rajiv Gandhi Award 2004 by Indian government for his outstanding contribution in the areas of business.

Girish Wagh Vice President and Head Small Car Project, Tata Motors

Girish Wagh ‘double’ claim to fame is his concept and execution in creating ‘small’ commercial vehicle segment (Tata Ace) as well as developing the cheapest car in the world (Tata Nano). He is the Vice President and Head Small Car Project of Tata Motors.

Wagh, a native of Pune, is a mechanical engineer from the Maharashtra Institute of Technology and did a post-graduate programme in manufacturing from Mumbai-based Business School, SP Jain Institute of Management and Research. His creation -Tata Ace – India’s fi rst mini-truck, brought about a revolution in goods transportation. The Ace platform has been subsequently used for a range of commercial and passenger vehicles. Wagh joined Tata Motors around 18 years ago but never thought he would one day head the project which would revolutionalise the automobile industry – the `one lakh car’ project. Wagh was actually reluctant to get into fullscale product design with the Ace, which later helped him become the favourite man for Chairman Ratan Tata’s most ambitious project - Nano. Tata Motors, MD, Ravi Kant hand-picked him for the Ace project with conviction and asked him to join the company’s excellence group in December 2000. The Ace rolled out in May 2005 and almost singlehandedly helped beat a recession in the commercial vehicle space.

His ability to deliver under tight deadlines impressed Ratan Tata and Ravi Kant who decided to move Wagh to the small car project in August that year. As he headed a 500-strong team, Wagh’s biggest challenge was to defi ne the product’s specifications as they went along. The Nano team had already put in about 18 months’ work by the time Wagh came on board. But he has cemented his place in country automotive history as the man behind the world’s cheapest car.

Vivek Chaand Sehgal Vice Chairmanm, Motherson Sumi Systems Vivek Chaand Sehgal is among the early batch of entrepreneurs who set up auto component companies to supply part for Maruti Udyogs’s small car. Sehgal began his innings in business with his fi rst venture Motherson Sehgal

INFLUENTIAL AUTO PERSONALITIES Cables to manufacture house and power control cables in 1977.

In 1983, Motherson entered into a technical agreement with Tokai Electric Company (now Sumitomo Wiring Systems) for manufacturing of wiring harnesses for Maruti Udyog. In 1986 Sehgal formed his fi rst joint venture with SWS which led to the establishment of Motherson Sumi Systems and since then there has been no looking back.

The group possesses a diversified business portfolio comprising electrical distribution systems (wiring harnesses), polymer processing, injection molding tools, elastomer processing, modules and systems including dash board modules, door trims, bumpers, lighting systems, air intake manifolds, HVAC systems, sunroofs, vehicle air conditioning systems, transport & stationary refrigeration systems, machined metal products, IT services, design engineering, CAE services, cabins

for off-highway vehicles, cutting tools and thin fi lm coating metals. The latest acquisition was of rear view mirror business from Visiocorp Plc, UK in March 2009, is now known as Samvardhana Motherson Ref lectec. SMR is one of the largest manufacturers of rearview mirrors in the world. This acquisition heralded Samvardhana Motherson Group to an established global Tier-I supplier status. SMG has over 90 manufacturing facilities, 15 design centres and 10 representative offices covering 22 countries across 5 continents. Under the leadership of Sehgal, SMG has evolved as a leading full system solutions provider to the global automotive industry.

Venu Srinivasan Chairman and Managing Director, TVS Motor Venu Srinivasan is credited with saving the two-wheeler major from the threat of bankruptcy

Auto Monitor

due to a crippling strike in 1990.

When TVS Motors’ joint venture partner Suzuki refused to bail out the company after a ravaging strike, Srinivasan decided to deal strictly with the labor unions. He shut the factory down for three months, and forced the unions to relent. He is an engineer from the University of Madras and has obtained a Masters’ Degree in Management from the Purdue University, USA. After serving in various TVS group companies for more nearly two decades, he became the Managing Director

35

of Sundaram Clayton in May 1979. Under his leadership as the Managing Director, Sundaram Clayton’s brakes division won the Deming Prize in 1998 for having ‘achieved distinctive performance improvements through application of company-wide quality control,’ He took over as the MD of the TVS Motors in 1986. In 2004, TVS Motors also won the Deming Award during his tenure as the MD. He has served as the President of Automotive Research Association of India, Pune, Society of Indian Automobile Manufacturers and Association of Indian Automobile Manufacturers. He serves as a part-time Member of Securities and Exchange Board of India, Member of Prime Minister’s Council on Trade and Industry and a Member of National Manufacturing Competitiveness Council, Government of India.

(Compiled by Nabeel A Khan)

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Auto Monitor

1 - 31 January 2011

VIEWPOINT

Managing design and development co m

Dr Klaus Holzapfel

W

hen an automotive manufacturer marketing a range of brands decided to improve the management of its electronic control unit (ECU) software handling process from development

Mark Heidenreich through to field service, it had a number of objectives in mind.

The company wanted to replace ad-hoc solutions and a variety of legacy systems, while simultaneously harmonising workflows for the management of vehicle

configuration changes, software distribution, and the management of workshop processes – for example, calculations relating to repair operations.

Process harmonisation was combined w ith functiona l enhancements to make it possible to manage the vehicle software in a single IT system throughout the entire organisation, with a common distribution process for software components covering the entire product lifecycle. This integrated approach helped the company master the complex task of managing the on-board vehicle electronics and software.

This manufacturer is not alone in looking for ways to improve electrics/electronics (E/E) management. E/E and onboard software are highly

complex, networked, fast changing and error-prone. To prevent development and test costs from mushrooming and rule out E/Erelated failures from the outset, rigorous processes and the associated IT support are required for E/E management.

This can help reduce development costs, increase product quality and accelerate innovat ions.

Consider ing t he product lifecycle as a unified whole (the ‘holistic view’) creates a consolidated IT landscape that minimises manual effort and potential errors. Development, manufacturing, sales and service all benefit from the increased product quality.

Addressing the Challenge of Complexity Consider

the

complexity

inherent in a typical manufacturer’s E/E environment: • Up to 80 ECUs, networked over as many as five different bus systems.

• Onboard software consisting of several million lines of code.

• Software that may be updated and enhanced on a monthly basis.

• M i l l ion s of possible configurations.

The growing complexity and the fast pace of E/E results in significant challenges for the automotive industry. For one thing, developers often have an incomplete view of the overall system and this causes co-ordination problems and errors. In addition, ever larger amounts of data have to be distributed to plants and workshops, and faulty data can cause assembly line downtime.

The result: Approximately half of all vehicle breakdowns are caused

by E/E problems To address the challenges posed by complexity, what is needed is a holistic view of E/E and mechanics throughout the entire product lifecycle. This approach is called E/E PLM Integration and means managing E/E within a global product context incorporating, in particular, the management of mechanical parts.

This task involves special E/E processes such as compatibility management, the maintenance of message catalogues, the simulation and analysis of the interaction between the ECUs, together with software distribution for manufacturing and aftersales. It also incorporates general Product Lifecycle Management (PLM) processes, including requirements management, change management, test management, document management and configuration management. Lastly, it involves the integration of E/E with mechanics-related areas such as mechatronics (mechanics plus ECU) simulation, mechatronics validation and the mapping of software IDs to article codes.

A n ef fective E/E PLM Integration solution must consider at least three categories: mechanical parts; E/E hardware (ECU hardware, sensors, actuators, wiring harness); and software (ECU software, coding data, characteristic curve data, activation codes). There is a strong logical connection between ECU hardware and software; however, from a PLM point of view, ECU hardware can be handled analogously to mechanical parts. The real challenge is the integration of onboard software in PLM. At fi rst sight, the product development processes for software and mechanics appear to be very different. However, a more thorough analysis reveals analogous data and artefacts in the two processes and therefore makes it possible to exploit the synergies between them.

For example, change management for the source code and the CAD models should be aligned and synchronised to permit the optimised management of mechatronics changes.

1 - 31 January 2011

VIEWPOINT

Auto Monitor

37

o mplexity through E/E PLM integration However, there is also a major difference. In the software development process, there is no equivalent to the manufacturing bill of materials (MBOM). This is because software is intangible and thus the amounts required for manufacturing do not need to be calculated. For instance, it is typically sufficient to distribute only one ‘part,’ which can then be integrated in as many cars as required. Furthermore, there are no problems with end-of-life stock, disposal or recycling.

At the same time, software and data require complex confi guration management. As a result, the main challenge in the integration of E/E and mechanics is not the unification of E/E hardware and mechanics (at least not as far as PLM is concerned). Instead, the challenge is to integrate the software with the other product categories.

To successfully implement E/E PLM, companies must overcome a number of hurdles. Available Product Data Management (PDM) systems are not yet ready for E/E and, consequently, the implementation of E/E PLM also involves the development and integration of custom components. However, the extension capabilities of many PDM systems are not sufficiently versatile to permit easy integration. As a result, extension capabilities are a prime factor influencing product choice. Furthermore, the implementation of a company-wide PLM solution requires discipline. Some operational departments have their own simple tools, based on Excel, Access and the like. For the units in question, this is ideal because of the flexibility it gives them.

However, it is not the optimum solution at the corporate level.

When a uniform company-wide PLM solution is implemented, departments such as these lose some of their flexibility.

A Successful Approach to E/E PLM Integration E/E PLM Integration involves the optimisation of both E/E processes and the PLM system landscape. This should include a holistic consideration of all the relevant processes, both in the E/E and mechanical fields, and as far as E/E is concerned, all the processes involved from development through to aftersales.

The approach consists of a multi-step process: Analysis: This involves a detailed analysis of E/E processes (including E/E configuration management, E/E test management, E/E change management, E/E requirements management), as well as an outline analysis of the PLM processes and the application landscape.

Optimisation of E/E processes: The objective is to establish optimal processes, with optimal IT support. This involves a vehicle manufacturer’s core processes. These are manufacturer-dependent and there is no standard solution. It is important to develop measures designed to master complexity, improve product and data quality, and increase consistency throughout the entire chain from development to aftersales.

Optimisation of the PLM system landscape: This goes hand in hand with the opti-

misation of the processes and includes the implementation of innovative concepts such as Service-Oriented Architecture (SOA). Sustainability should be a key consideration.

Development and integration of E/E PLM: The best solution will vary depending on the company, but should incorporate standard products where it makes sense, as well as solutions specifically developed for the organisation.

Rollout: The rollout of processes and IT must be co-ordinated.

Acceptance within the company is crucial; this step must not be neglected and should include training and support.

E/E PLM Integration should be planned within the context of a functional landscape spanning the entire product lifecycle. This can help the company identify

potential areas for optimisation and actions that are needed in the E/E PLM system landscape.

Confi guration management is a cornerstone of an E/E PLM Integration solution and depends on the consistency of the data across processes. Configuration management only works if all the people involved access the same database. If everyone involved uses their own tools then the result can be chaos.

For example, developers cannot reconstruct errors encountered during the manufacturing or aftersales stage.

However, development, manufacturing and service need views of the database that differ in their granularity. In the case of manufacturing, for example, a coarse-grained view corresponding to the parts that has

to be installed in the car is usually sufficient. In contrast, when aftersales staff have to perform repair work, more details are needed, such as which versions of the software can be fl ashed into a given ECU. Finally, developers must be able to reconstruct everything that can occur in downstream processes.

It is also crucial for the manufacturer to maintain an overview of bus communications. This requires a holistic model for the entire E/E system and is the only way to verify the consistency of the E/E system at an early stage.

It allows the company to come to reasoned conclusions about bus and gateway load early on.

The bus communication database should not be a stand-alone solution, but should instead be central to the development proc-

esses. This guarantees that the bus communication database precisely describes what is going on in the car.

Benefits Include Cost Savings and Increased Turnover E/E PLM Integration directly helps reduce service costs.

E/E PLM Integration directly helps to increase innovation.

E/E PLM Integration helps improve data quality.

E/E PLM Integration helps improve product quality.

E/E PLM Integration helps reduce development times.

(The authors work with Capgemini. Views expressed are personal)

Defining Future Opportunities 38

Auto Monitor

DEFINING FUTURE OPPORTUNITIES

As the automotive sector revs up into the next decade, globalisation is likely to hold the key to future growth. Penetration levels of the sector could reach a new high with the ultra low cost car development besides electrics, hybrids and green vehicles. This could trigger off a new wave of innovations in design and engineering of components as well as research and development.

A key barometer of progress of a growing economy is its infrastructure growth without which the drive down the automotive lane could be beset with bumps and potholes.

We identify some of the major opportunities that could spearhead the growth momentum going forward:

Roads and Other Infrastructure With the government paving the way for increased private investments in the road sector, total investments in the sector could more than double over 2010-11 to 2014-15, according to Crisil Research.

‘Better quality of roads will improve transporters’ turnaround time and fuel efficiency and increase their cash flow and profitability and will raise demand for commercial vehicles.

Rural road projects will not only improve the quality and coverage of rural roads but also create opportunities for increasing nonfarm income. Rural demand is therefore, likely to drive the overall industry growth for two wheelers,’ said Head of Crisil Research, Manoj Mohta.

The ambitious National Highways Development Project for developing the highway network of the country, of which the fi rst phase was the Golden Quadrilateral, lagged behind schedule due to land acquisition issues, but is expected to reach completion by next June.

The highway structure would integrate the country through four major expressways connecting the key cities of Chennai, Mumbai, Delhi and Kolkata and spanning four to six lanes, of more than 3600 miles (5800kms).

Floated by the National Highways Authority of India under the aegis of the Union Ministry of Road, Transport and Highways, the NHDP is being implemented in various phases.

Under phase I, II and III of the NHDP project, upgradation of more than 32,754 km of arterial routes of the national highway to international standards is being undertaken.

It would facilitate smooth and fast movement of vehicles and shore up the capacity of the highways. Small towns on the highway route would similarly expand to meet the rising needs of the burgeoning traffic. Automotive Practice Leader, PricewaterhouseCooper India, Abdul Majeed is of the opinion that a major focus on developing key infrastructure is necessary in the next ten years, if India has to evolve into a developed economy. He expressed his optimism that these issues would be streamlined going forward.

Citing reasons for delays in infrastructure projects, he explained that while project planning was efficient in the country, their executions always got mired in a legal tangle over acquisition of land.

Apart from the Golden Quadrilateral, the fi rst phase of the NHDP also encompasses 380 km port connectivity and some sections of the NorthSouth and East-West Corridors.

The East-West corridor would be completed by 2013 but the North-South Corridor would end by 2015.

T he Nor t h-S out h-E a st West Corridor in the second phase of the NHDP would connect Srinagar, Kanyakumari, Porbandar and Silchar, at a cost of $ 12.317 billion and would build 7,300 kilometres of four-six lane expressways. The third phase of NHDP that will upgrade 12,109 km of highways to four and six lanes has a deadline of December 2013. The fourth phase of NHDP comprising two-lane 20,000 kms of national highways is likely to be completed by December 2015.

At present, a Golden Quadrilateral rail system connects Mumbai, Delhi, Kolkata, and Chennai moving about 75 percent of the rail cargo load and over 60 percent of the passenger load in the country. But once the highway network is ready, some of its load would be transferred on it to reduce cargo congestion on rails.

Connecting villages with good infrastructure would eliminate middlemen from the process of procuring grains from farmers and transporting them to cities.

‘The entire infrastructure network encompassing ports, roads, highways and power would be a critical component of India’s growth over the next decade.

Infrastructure will fuel India’s growth and indirectly the automotive sector on the back of such growth,’ confi rmed Head, Automotive Practice, KPMG India, Yezdi Nagporewalla.

‘Besides infrastructure development will impact direct growth as building infrastructure for a country like India would create a huge demand for automotive products especially commercial vehicles and construction equipment. Road infrastructure also creates newer markets as it improves connectivity,’ he added.

Research & Development With vehicle manufacturers competing for new designs for upcoming models for the Indian market, research and development (R&D) is expected to play an important role, according to industry captains. Particularly so as the backend supply support for several components for passenger cars and CVs is yet to meet global standards and would require intensive R&D effort to attain the international level.

Majeed visualises a sizeable hike in R&D spends to become competitive. Demanding customers and more stringent emission regulations would also necessitate a higher level of product innovations and introduction of new technologies.

R&D constitutes the key to maturity in any developed country and according to Nagporewalla, while R&D activities that were clustered in developed economies during the last decade would now witness a momentous shift into India as most of the global OE manufacturers had set up manufacturing bases and engineering centres in India and were recognising India’s capability in this area.

To cater to the domestic and

1 - 31 January 2011

export markets, global OEMs based in India are expected to tap the low cost route in terms of design, engineering, technology and R&D to become competitive since imports from overseas parent companies may not prove to be commercially viable.

Chief Operating OfficerInstrumentation & Test Systems, AVL India, Mukul Ghanekar pointed out that R&D in the next decade would be driven by the legislative requirements of emission standards prevailing globally and in India.

‘The next logical step will be Euro V and VI norms for tapping export markets of OE manufacturers based in India. Emission regulations as well as norms for reduction of Co2 will be major drivers for R&D with global warming and climate change becoming major issues globally. New products will look at design aspects and electric/ hybrid powertrain that will in turn lead to a reduction in Co2 gases. But hybridisation will be a big challenge, so to facilitate battery integration with the internal combustion engine in a hybrid vehicle, OEs will increasingly develop control software inhouse instead of sourcing it from IT companies. Pure electric vehicles are not very popular in the country but over the years, efforts will be made in this direction as well,’ elaborated Ghanekar.

AVL develops powertrain systems with internal combustion engines as well as instrumentation and test systems.

Ultra Low-Cost Vehicle The ultra low cost vehicle would form part of the emerging R&D framework and create a separate segment for customers driven by a different pricing strategy, according to Majeed.

‘I see growth in this category of vehicles that is driven by the lower middle class, rural customers and the middle aged,’ added Nagporewalla.

A trendsetter has been the ultra low cost car from the Tata stable, the Nano that after initial hiccups and dwindling sales has suddenly shot up in volumes after a renewed promotional offer announced by the Tata Motors.

‘A number of global automotive majors are evaluating steps to streamline costs of small cars making them more economically viable,’ said Director General, Society of Indian Automobile Manufacturers (SIAM), Vishnu Mathur.

Engineering Services Outsourcing E n g i ne e r i n g S e r v ic e s Outsourcing is a growth area for the automotive sector and spans outsourcing of product designs and non-critical drawings of components.

According to AVL’s Ghanekar, outsourcing from India has been happening in drawings of components with different versions being released to cater to different demands of customers.

‘Now more will be reproduced.

Moreover, a higher testing of

Contd. on P40

HOUSE CALLS HOW WE BRING THE DOCTOR, THE MEDICAL KIT AND THE ENTIRE PHARMACY TO YOUR DOOR.

We purchased our 1st Haas machines 10 years ago. Our local Haas Factory Outlet – a division of CNCSSIPL – has fulfilled their commitment of stationing local service engineers in Baroda and spare parts stock in Ahmedabad. Services of trained service engineers, and spare parts, normally reach us within 24 hours. We use our 9 Haas machines for machining extremely accurate components, and the accuracy we achieve is far more than that committed to by Haas in the machine brochures.

More importantly, this accuracy has remained consistently the same for the past 10 years, and is still continuing. Overall, we are very happy with the response and the access we have to personnel at all levels in the Haas hierarchy in India for early resolution of any problem.

MR. BIPIN CHEMBURKAR DIRECTOR, CAPIQ ENGINEERING PVT LTD, VADODARA

Haas Factory Outlet – India locations NORTH, WEST AND EAST AREAS: telephone – 022-27742181, 9320178231 SOUTH AREAS: telephone – 080-41179452 / 53 Email: indiasales@haascnc.com | www.HaasCNC.com | Made in the USA

40

Auto Monitor

Contd. from P38 engines and vehicles will be outsourced to India that does not form the core part of the development of the vehicle. For instance, endurance and durability testing and ‘run of the mill’ testing of family of engines that are not core issues,’ explained Ghanekar.

Compared to developed economies, India has a vibrant software sector and OE manufacturers have been leveraging the CAD and CAM software from it, remarked Majeed. He expects that with a better intellectual property right regime in the future, a lot of activity would be witnessed in this sphere.

According to the Chairman, Engineering Export Promotion Council, Aman Chadha, engineering process outsourcing is an emerging high-growth opportunity for India. For manufacturers it is an attractive option because of increasing pressure resulting from shorter product life cycles

DEFINING FUTURE OPPORTUNITIES

1 - 31 January 2011

and the strain on their internal resources. Also, EPO comes with a host of benefits for the outsourcing organization.

An engineering process is a complete engineering design cycle activity for a product or a service from the conceptualisation stage till the pre-manufacturing stage including the development of the prototype. It also extends beyond the manufacturing stage including applications like product life cycle management solutions and product re-engineering solutions.

Skilled Manpower Availability Recruiting quality manpower would be a challenge in the next decade, felt Majeed. According to him, India was still not geared up for imparting the latest technologies and a lot of changes were required in its educational curriculum on the likes of countries like Korea and China.

‘This would remain a major challenge for the sector that has been bogged down by the gap between demand and supply for skilled manpower,’ affi rmed KPMG’s Nagporewalla. This gap is expected to grow with OEMs falling back on alternative in-house training schemes for training

potential talent, he added.

Management Consultant of In Toto Marketing, Shriharsha Jogalekar was of the opinion that over the next 10 to 15 years, India would boast one of the largest young manpower population in the world. Hence, the need for survival would be paramount

with mind boggling educational choices available for young minds in terms of diploma courses and business schools beginning to offer graduate courses as an extension of the earlier PG courses. He cited high salaries prevailing in the IT industry as the main lure attracting skilled manpower from the auto sector.

Emission Regulations The government would play a bigger role in execution of emission regulations going forward with growing vehicular population and need for more stringent regulations. Customers and nongovernmental organisations would trigger breakthrough technologies in cutting down emissions with their demand for innovative products and outcry against pollution.

Nagporewalla said that the roadmap for emissions regulation had already been laid down by the Auto Fuel Policy of the Union Government though it was lagging by around two to three years in terms of implementation in cities and rural areas. In the pipeline, are also standards for cutting emissions of nitrous oxides, carbon monoxides and hydrocarbons, reducing the number of suspended particles in air as well as regulations for carbon dioxide that causes global warming, according to AVL’s Ghanekar.

Rural Consumers Rural consumers are likely to play a more prominent role in the coming years with rising levels of income placing more disposable income in their hands. This would also be triggered by movement of farmers to cities for sale of farm produce.

‘Rural markets will experience a robust growth in terms of penetration of vehicles as they become more attractive for expanding toplines of companies, Low cost cars and entry-level model launches lined up over the coming two years, besides two-wheelers, will boost growth in this market,’ remarked Nagporewalla.

Jogalekar was of the opinion that the simple rural folk would get wealthy and possess more purchasing power as mechanized farming became more popular and daily wages and annual incomes shored up. With 70 percent of the population residing in rural areas, the potential for new auto products would be high as the rural population was exposed to new developments and new technologies. In other words, rural consumers would drive tomorrow’s demand and come to the mainstream markets for sale of products.

Availability of Fuels OE manufacturers are likely

Contd. on P42

42

Auto Monitor

DEFINING FUTURE OPPORTUNITIES

Contd. from P40 to work on fuel efficient models in addition to alternative powertrain technologies like the electric and hybrid vehicles in the coming years. Industry captians felt that if the government de-regulated diesel like it had earlier de-regulated petrol, a price rise was inevitable to match rising crude oil rates. This would raise the cost of ownership and maintenance of the vehicle.

As regards gaseous fuels, there is need to fi rst ensure allocation and availability of these fuels on a sustainable basis for the auto industry and then to create adequate infrastructure for dispensing these fuels on a national level, according to SIAM’s Vishnu Mathur.

Expressing ambiguity on the focus of the policy makers, he added that availability of CNG or LPG was not assured on a national scale. ‘There is already a growing perception that diesel should not be used for personal automotive use although it is clean and fuelefficient. Therefore, as a country, we do not have a consensus of which direction we need to take.

There is an urgent need to consider the various alternatives available and to focus our energies on one or two technologies

1 - 31 January 2011

50 to 100 basis points,’ clarified Mathur, reiterating difficulty in predicting which route the credit graph would be headed next.

He added that the main avenues of availing credit would remain unchanged in terms of public sector banks and private banks, non-banking fi nance companies and NABARD which extends loans for agricultural tractors.

Credit availability is the life blood for the commercial vehicle and tractor segment and most manufacturers are likely to look for avenues to make credit easier for customers.

Free Trade Agreements and other Trade Pacts

rather than disperse our scarce resources in experimenting with all and sundry options,’ he added.

Citing the China experience Mathur explained that they had decided to give a major push to electric mobility with the Government making available

huge resources to their industry to gain global leadership in this field.

Credit Availability Most of the industry experts expressed difficulty in predicting the credit scenario for India going forward but Nagporewalla said

that going by the trend over the last decade, rising interest rates, inflationary trends, volatilities in foreign currencies vis-à-vis the Indian rupee and money supply would be the deciding factors.

‘At present credit availability is adequate though interest rates have just gone up by some

‘Free Trade Agreements will usher in enhanced technology into the country,’ predicted Jogalekar, who sees an FTA with China as the next step forward.

Despite a boom in bilateral commerce in the past decade, and cooperation on global issues such as climate change, the two countries still remain deeply suspicious of each other’s growing international inf luence.

China is India’s biggest trading partner, with bilateral trade expected to cross $60 billion. But an FTA could be several years away as Indian manufacturers fear China might use India as a bigger dumping ground for its products.

Chinese tyres and components have been making their way into the Indian replacement market priced much lower than their Indian counterparts. Among other FTAs under consideration are with the Gulf Cooperation Council, South Korea, Japan, Malaysia, Pakistan, Southern African Customs Union, Egypt, Israel, Russia and Australia.

Free Trade Agreements (FTA) between countries are expected to remove tariffs, quotas and preferences on most of the goods traded between them. Countries normally choose FTAs when their economic structures are complementary and not competitive.

India entered into FTAs with Srilanka in December 1998 and with Thailand in October 2003.

The India-EU summit at Brussels has been working towards an FTA by March 2011.

The two sides have already agreed to eliminate tariffs on 90 per cent of all tradable goods.

Under discussion is an upping of this figure, with India asking the EU to abolish tariffs on 95 percent of goods, with EU asking India to offer a tariff slash on 98 percent of goods. India has inked trade agreements with Bangladesh, Bhutan, Ceylon, Maldives, China, Japan, Korea and Mongolia. These bilateral or multilateral treaties bind two or more countries to specified terms of commerce, involving mutually beneficial concessions.

India has a regional agreement, the SAFTA or the South Asia Free Trade Agreement with Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives. A Preferential Trade Agreement (PTA) exists with Afghanistan and Chile as also with the MERCOSUR, a trading bloc in Latin America comprising Brazil, Argentina, Uruguay and Paraguay. It has Chile and Bolivia as its associate members. The MERCOSUR was formed in 1991 with the objective of facilitating the free movement of goods, services, capital and people among the four member countries.

(Compiled by Shobha Mathur)

Tab - AM Jan11 pg 122

Tab - AM Jan11 pg 43

46

Auto Monitor

1 - 31 January 2011

STUDY

Impact of external market changes on the Indian Commercial Vehicle Industry Segment-wise Sales composition within Indian Commercial Vehicle: FY 2005 - FY 2010 100% 4% 90% 21% 80%

3%

5%

5%

3%

3%

21%

26%

22%

18%

17%

38%

35%

28%

29%

27%

25%

20% 38%

35%

28%

29%

27%

25%

2005-06

2006-07

2007-08

2008-09

2009-10

70% 60% 50% 40% 30% 10%

PS Easwaran

T

he medium and long term potential of Indian commercial vehicle market is undoubtedly positive. Specific sub-segments within the market like below 5 tonnes in LCVs, above 25 tonnes in HCVs and trailers are expected to grow at higher rates in line with improvements in road infrastructure and robust demand from retail and construction segments.

Lower levels of penetration,

R Sriranjini

0% 2004-05

high levels of past growth and strong potential into the future augur well for Indian Commercial Vehicle market. Over the past few years, there has been significant activity in the automotive industry specifically in the passenger vehicle (PV) market driven by new players, product launches, and ever-growing size of the consuming segment. It is now the turn of the Commercial Vehicles (CV) segment to take centre-stage

Q LDT

with growth rates comparable to that of PV industry over the last five years. The CV industry is closely linked to the economic performance of a country and typically follows the typical cycle.

Hence it should not be surprising that the market rebounded faster in FY 10, post the reduction in market volume during the glo-

Q MDT

Q MHDT

bal recession. (The CV industry grew at 38 percent in FY 10 over the previous year while PC industry grew at 26 percent during the same period).

W hat is making the CV industr y interesting is the transformation that the Indian transportation sector is going through, albeit slowly. The

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Q Tractor

impact of steady changes in the transportation sector can be witnessed in the Indian truck market where the CV market is on a transition mode exhibiting characteristics of both developing and developed markets. The recent past has seen entry of a number of national and international players, newer product offerings with improved value proposition, improved technology and aesthetics on the supply side. The demand side has exhibited strong signs towards requirement for better lifecycle costs and reliability.

With total sales of around 530,000 commercial vehicles, India is among the top six/seven CV markets in the world. Despite this, India has significantly lower levels of penetration compared to other developed and developing markets.

The above scenario is clearly evident in the goods vehicles market which accounts for almost 85 percent of the total.

However, empirical and anecdotal evidences from other countries also indicate that with increase in GDP, the demand for CVs increases more than proportionately with the GDP. Globally, CV demand is driven by economic growth (primarily growth in industry segments) and the associated growth in infrastructure. Hence, it is beyond doubt that there is a strong longterm potential for CV in India.

Therefore, the question that needs to be answered would be what are the medium-term and long-term drivers that would lead to change in the product portfolio and nature of products in the market.

Retail segment to drive growth in the sub five tonne LCV segment fuelled by the change in transportation model to hub and spoke.

Today, the ratio between Light Commercial Vehicles (LCVs) (sub 7.5 T) and Medium Commercial Vehicle (MCV: 7.5-16T) / Heavy Commercial Vehicle (HCV: > 16T)) is about 54:46 (FY 10). There has been a significant change in this ratio over the last few years.

In FY 05, LCVs were 38 percent (of the total sales) predominantly driven by the introduction of the highly successful new products in the sub one tonne range. What would however be interesting is the comparison of the composition of product portfolio with that in other nations –if we consider a cross-section of developed and developing countries, the ratio of LCV to MCV / HCV is around 4:1. The predominant reaso

Contd. on P134

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48

Major Challenges

Auto Monitor

As we look forward to the coming decade, the automobile industry is staring at several challenges, which have the potential to disrupt or even derail the growth momentum. Some of the challenges, if tackled in right earnest, could also turn into major opportunities for the automotive sector. We profi le the ten biggest challenges facing the automotive sector in the coming decade:

Urban Congestion Growing vehicle population on the urban roads is already beginning to have unintended consequences with policy makers and town planners having to deal with increasing congestion on roads. Infrastructure development including roads and bridges has lagged far behind compared to growth in

MAJOR CHALLENGES

vehicle sales. Estimates by the Society of Indian Automobile Manufacturers (SIAM) suggests that passenger vehicle sales are likely to cross eight million units by 2015-16. Although this growth may appear to be realistic from the production plans of OEMs, there is no indication to suggest or believe that the road infrastructure will keep pace with this growth.

‘Congestion in the urban areas is likely to be a major challenge to deal with as current pace of growth in the automotive sector cannot be sustained with road and port infrastructure we now have,’ says Head, Crisil Research, Manoj Mohta. The challenge lies not only in terms of infrastructure creation but also policy directions in terms of encouraging a particular class of vehicles,

1 - 31 January 2011

in one country or region cannot always be replicated in another region or situation.

Product Development

incentives for using public transportation and other measures to address the problems associated with growing mobility.

‘Urban congestion is an inevitable consequence of eco-

nomic growth and rising mobility.

Different countries have faced the situation and found different solutions to tackle the problem,’ says an urban planning expert.

He cautions that solution adopted

When the then Finance Minister P Chidambaram announced a cut in the excise duty in the 2006 budget from 24 to 16 percent, it laid the foundation for growth momentum of compact cars in India. It encouraged sale and manufacturing of compact cars in the country.

Some of the models from Tata Motors, Hyundai Motors and several from Maruti’s stable became eligible for the excise duty benefit. Chidambaram further slashed the duty on ‘small’ cars measuring less than four metres in length with 1.2 litre petrol and 1.5 litre diesel engine from 16 to 12 percent in the 2008 budget.

The successive duty cuts not only made compact cars cheaper for customers but also encouraged car manufacturers to evaluate possibility of developing compact cars for the Indian market and developing their Indian facilities as an export hub.

Industry observers are of the opinion that product development in India though seen as a major opportunity could also turn into a major challenge. Even though developing a model using local designing and engineering resources may appear attractive, ensuring steady supplies of components and getting quality manpower is likely to be a major challenge.

Access to resources and right technology in developing a product is crucial for timely delivery. ‘Product development can be seen as a major opportunity as well as a major challenge.

Though ultra low cost vehicle can be India’s forte in coming years, manufacturers will have to deal with major challenges to deliver,’ says Mohta.

Access to Technology Even as the Indian market has emerged as one of the fastest growing automobile markets in the world, it has not been a leader in technology absorption and adaptation. The access to the latest technology for vehicle manufacturers as well as end customers continues to be a major issue facing the Indian automotive sector.

Industry players are of the opinion that getting access to right technology may come at a price in terms of stake sale, joint venture or collaboration as far as auto component manufacturers are concerned. Local development of components and technology can help to an extent but industry would benefit in terms of cutting time to market by not reinventing the wheel.

End of Life Management ‘End of Life’ refers to road worthy life of a vehicle and provisions for subsequent disposal of the vehicle in a unit as per any specified regulations with regards to safe and appropriate disposal of

Contd. on P50

50

Auto Monitor

MAJOR CHALLENGES

1 - 31 January 2011

Contd. from P48 vehicles. The issue of the end of life management has assumed importance in recent years, due to lack of formal and effective mechanism to dispose vehicles at the end of their ‘useful’ life.

As compared to the eighties and nineties when relatively smaller number of vehicles were manufactured and sold in the domestic market from a handful of manufacturers, the vehicle population on the road has grown in multiples with several domestic and global automobile manufacturers selling around three million passenger cars and goods carriers in addition to two and three-wheelers.

Captain Mohan Ram, an authority on ‘End of Life’ management and vehicle recycling, who heads the SIAM committee on the subject, says that the issue requires immediate attention given the vehicle sales growth over the last few years. The key issues that are needed to be addressed include regulations for recyclability of vehicles manufactured and sold in the country, minimum standards of hygiene, basic operational standards in the existing and/or upcoming units, minimum labour relat-

ed standards, requirements for capital equipments and processes and other operational and process related matters in case of existing and newer vehicle disposal and recycling units.

‘A particular aspect that has to be taken into account while certifying or setting up a recycling unit in India is that it cannot be modelled on the lines of existing units in developed markets in Europe, North America or Japan.

Units in these markets are highly automated due to shortage of labour but we have to ensure that there is minimal automation

in such units to allow adequate employment creation. What we can learn from units in the developed markets is mechanism to manage efficient disposal of non-roadworthy vehicles including two and three-wheelers,’ says Captain Ram, who also serves as a consultant to the TVS Group.

Industry sources further add that effective vehicle collection mechanism is very critical for proper management of vehicles nearing or having surpassed their useful life or road worthiness.

A model vehicle recycling unit set up in Chennai as part

of the NATRiP project and set to become operational by middle of this year, may not be shape of things to come. It is likely to act as a reference point for units or facilities in the future and to learn from mistakes and what can work under Indian conditions. It may, for instance, be more appropriate to follow the Japanese model of gathering non-road worthy vehicles by putting the onus on the last owner to get the vehicle to shredding units rather than following the European model of making OEMs accountable for disposal of vehicles.

‘As in any civilised society, effective mechanisms for people who die from natural and unnatural causes have to be managed and so is the case with vehicles.

If the issue is not addressed in the right earnest, it will come to the fore at the most inopportune moment for the Indian automobile industry,’ adds Captain Ram.

Skills Development One issue on which most Original Equipment (OEs) and component manufacturers agree is the shortage of skilled manpower in the automobile sector.

Many auto component suppliers have been dealing with this issue for a while now and the issue has grown to become a major worry that could potentially derail the growth of automobile industry.

‘We need more initiatives on the lines of National Skill Development Corporation to tide over the manpower shortage or we will be facing a major crisis in coming years,’ said President, Automotive and Farm Equipment Sector, Mahindra & Mahindra, Dr Pawan Goenka. He added that providing right skills to fresh engineers as well as attracting talent from other industries is required as the overall number of people with basic education with potential to make a mark in the automotive sector seems to be adequate. Indian technical and engineering institutes churn out sizeable technically qualified manpower next only to China, according to Dr Goenka.

Industry sources are of the opinion that the automotive sector has to be attractive for talented executives. Adequate growth opportunities with regular training and empowerment may help in meeting short to medium-term goals but major initiatives at the central and the state government level is required to meet the long term demand and supply gap in automobile sector with OEMs, suppliers as well as in distribution business.

The Indian auto industry could suffer a shortfall of around 3.9 million graduates, 0.6 million engineers and 0.75 million personnel with vocational training by 2012, according to a recent report by the Confederation of Indian Industry (CII) and Boston Consulting Group.

Rising Input Costs Fluctuations in commodity prices have begun biting automobile manufacturers at the most inopportune time. OEMs are facing challenges in terms of coping with rising inputs costs.

Most manufacturers are not in a position to pass on the increased costs to the customers without derailing the demand.

‘Raw material price fluctuation

Contd. on P52

52

Auto Monitor

Contd. from P50 needs to be managed keeping in mind the production plans and impact it would have on total cost of production. In a dynamic environment that we have been seeing for the past couple of years, this is a major challenge and will continue to remain so in coming years,’ says an official from a two –wheeler manufacturer.

Most OEMs have quarterly meetings with suppliers to take stock of various supply related issues and discussion on raw material price fluctuations has been increasingly dominating these meetings. The situation nearly got out of hand early last year when scrap prices reached around `30-32 per kg making foundry operations unviable.

Castings and tyres are likely to remain in short supply in the near to medium term prompting OEMs to look for alternative sources outside India.

MAJOR CHALLENGES

Alternative Drive Technologies Crude price inching close to $100 per barrel towards the end of the decade led vehicle manufacturers to renew their effort towards looking for a viable alternative powertrain technology. Our panel of experts were unanimous in their opinion that alternative drive technologies including hybrid, electric, dual fuel or blended fuel on a commercial scale is likely to be the defi ning challenge in the coming decade.

‘We are unlikely to see a single defi ning fuel or powertrain technology in the coming years across the world. Local availability of fuel sources would guide the dominant drive technologies in most markets. This could include ethanol in Brazil or CNG in India,’ said Chief Executive Officer & Managing Director, Cummins Research & Technology India, Craig Barnes. Automobile man-

ufacturer in India are only too aware of ‘Sustainable Mobility’.

Growing Competition Competition in the automobile sector is likely to take on a new dimension with entry of several

global automobile manufacturers in India. Most of the global passenger car and commercial vehicle players have either set up their facilities in India or are in the process of partnering with local players for stepping into the

1 - 31 January 2011

Indian market.

Industry players are of the opinion that compact cars and ‘small’ commercial vehicle segment is likely to see numerous launches in the coming years.

If the number of offerings and upgrades of existing models are any indication, manufacturers have their work cut out in terms of well defi ned value proposition and sending a clear message to target customers.

‘Growing markets and increasing competition within different segments would actually help in the evolution process of the market. Customers are likely to opt for a model or a variant, based on subtle differences and individually defi ned criteria,’ says Global Automotive Sector Leader, Capgemini, Nick Gill.

Maintaining profitabilit y while offering value propositions and meeting expectations is likely to turn into a major challenge for OEMs. Periodic product upgrades, offering latest innovation and keeping in close touch with customers are some of the ways in which OEMs could face the growing competition.

Capacity to Manage Growth Rapid growth tends to manifests itself by posing major challenges to manufacturers.

Challenges posed by growth in terms of execution on a larger scale while keeping process and quality consistency can be tricky.

Some passenger car manufacturers realised this fact the hard way towards the end of the decade when a sudden surge in vehicle sales, after a slack period, led to manufacturers scrambling to meet the demand and being unable to keep pace.

Capabilities in terms of processes, skilled manpower, managerial ability and other resources are essential to ensure that rapid growth in relatively short time frame can be effectively managed. Even more challenging is to ensure that resources to maintain the growth keep trickling in. These resources could be capital, trained or skilled manpower, raw material, access to latest technology or some combination of these.

Increasing Consumer Expectations Growing customer expectations are turning into the biggest challenge facing the automotive industry. a plethora of choices available to customers has led to growing expectations on their part in terms of product quality, service delivery, consistent customer experience among other set of expectations.

The difficulty of managing customer expectations is accentuated by growing competition and lack of customer loyalty for a brand or a product.

Component suppliers also have a major issue to address in meeting OEM expectations.

Consistent product quality, timely delivery, zero defective PPM and flexibility in ramping up capacity are major expectations from a supplier. Most auto component exporters have been dealing with these issues with global OEMs. But with India becoming a production hub as well as a major consumption centre, the issue of managing customer expectations has never assumed such prominence as now.

54

Auto Monitor

1 - 31 January 2011

VIEWPOINT

Auto industry needs skills strategy to stay competitive

Dilip Chenoy

T

he growth rate of the automobile industry at the beginning of this decade was around 13 percent. In 2010, it is likely to exceed 31 percent.

During the next 10 years, it would

grow at a higher pace than the last decade and touch a size of $175-200 billion by 2022.

A number of new players, OEMs and component manufacturers have invested in India.

Not only has the core industry changed but support and allied industries like logistics, design, R&D, sales and service, fi nance, and insurance have scaled up and adopted new business practices. Bus transport companies are now looking at a complete solution of vehicle, driver and maintenance and that too with close to 98 percent up time. A pick-up and drop facility would soon be the norm rather than the exception.

During the last decade, one of

the industry’s key competitive advantages was the availability of skilled manpower. SIAM estimates industry employment at around 13 million. However the recent trends indicate that this advantage may not be sustainable unless remedial steps are taken.

What are these trends? First, there is the Quantity Challenge.

The number of people required to sustain growth is an additional 35 million by 2022. Next, there is the Qualification Challenge.

An IMaCS study, for the National Skill Development Corporation (NSDC), has identified a number of skill gaps that exist in various sections of the value chain in the supply industry,

OEMs and component manufacturers and in the sales, service and support functions.

Thirdly, there is the Quality Challenge. Many graduates of ITIs, engineering colleges and other institutions are not readily employable and need retraining at substantial costs to be employable. There is an impact on the bottomline in more ways than one. Shortage of people has resulted in fi rms looking to existing employees in industry and incentivising them to move to positions by providing higher remuneration. This means wage levels are increasing across the same horizontal position.

Industry in existing locations and more so in new centers,

Utarrakhand and Gujarat, for example, are setting up training facilities so that they could have a work force. Further, productivity levels in India, as pointed out

by IMaCS, are lower than Brazil, Mexico, Japan and USA. The problem is more acute outside OEMs, both in the supply chain and also in the sales, support and services segments.

Of the total employment, over or close to 70 percent is in the support function. Direct employment in OEMs, component manufacturers (tier I, tier II and tier III) and the basic raw material sector accounts for around 30 percent. Between 65 percent85 percent of these, depending on the nature of the industry, are engaged in manufacturing.

According to the IMaCS-NSDC study, auto OEMs would require 1.6 million, component manufacturers 5.7 million, raw material sector 4.4 million, and service sector 15.3 million. Additionally, over 5 million drivers would need to be trained.

In terms of qualifications in the manufacturing arena, close to 50 percent would be from ITIs or other vocational streams.

About 25-30 percent would be diploma engineers or engineering graduates. The percentage of ITI and vocationally trained persons in service centers is around 65 percent. Graduates are preferred in dealership and auto fi nance companies.

The quality challenge is more severe. Due to the inability of the existing system to produce employable people, industry has taken a leadership role in adopting ITIs, partnering colleges, establishing their own training centers, and working with NGOs and other training partners to retrain persons who could be recruited. Many have launched CSR initiatives either at their place of work or at remote centers. Some have directly, or through their dealerships, started driver training schools. Some have started training service technicians or are working with partners to provide skill to work in factories, initially as apprentices and then as workers.

SIAM itself has a large driver training and refresher programme. These programmes are doing good work and annually training a few hundred to a thousand. But if we look at the numbers required, there is a huge disconnect. Unless industry members work together, the gap may not be bridged.

A number of initiatives need to be taken simultaneously.

Industry has to work across the educational chain. Working with skill development and t ra ining inst itutes wou ld address both short and medium term needs. For the longer term, there is a need to upgrade skills taught in vocational schools, ITIs, polytechnics, engineering colleges and other institutions of higher learning.

We need a clear strategy and a process. SIAM, ACMA and FADA have taken the fi rst and crucial step to set up an Automotive Skill Development Council (ASDC). It is the fi rst NSDC-approved skill council, under the framework

Contd. on P59

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56

Auto Monitor

1 - 31 January 2011

VIEWPOINT

Auto Supply Chain @ Cross Roads: Need for Full Value Supply

Suneel Aiyar Associate DirectorConsulting (Supply Chain), PricewaterhouseCoopers

A

utomobile growth is a key part of India’s economic miracle. Passenger car sales

are expected to more than double to at least four million units by 2015 and then rise to nine million a year by 2020. These should be happy times for the industry, yet it is concerned about managing growth and fi xing problems of severe component shortages.

This is in fact a testimony to the verify that the dominant philosophy of cost savings through use of competitive sourcing techniques will not be enough in the years to come.

The rapid recovery from crises aided by fiscal stimulus, competitive conditions have created an even more turbulent and uncertain business environment (which some have dubbed the ‘new normal’) that is driving auto com-

panies into uncharted waters.

For example, while car buyers are clamouring for the Scorpio and Xylo models, Mahindra is also getting ready for three of the company’s new launches. Two of them will be variants of existing models and that last one, an allnew Scorpio set for a March 2011 release. By all means, it must be what they call an ‘exciting time’ at M&M. Except that it isn’t. The Nashik plant is just not getting enough components to make cars both for the existing market and to build an inventory of the new launches.

Over the past eight months, M&M has seen its growth plans scuttled by an acute shortage of parts. Simply put, it is a choice

between making customers wait longer for their cars and going into the launches without adequate stock. It is a huge dilemma. The current logjam only shows that the problems of under-investment, lack of innovation and poor risk-taking in the components sector are translating into missed opportunities for auto makers.

In a very counter intuitive manner high trajectory growth

has intensified competition and left room for error. Intensifying resource competition for supply capacity, basic materials, power & fuel can constrain growth opportunities and drive costs up. In combination, these forces will have a direct impact on how tomorrow’s automotive value chains are structured and how they operate.

In this environment, just saving money on external expenditures will not be enough to survive in the years to come.

CEO expectations for supply had expanded well beyond cost reduction to include innovation and growth, risk management, value chain optimization and even sustainability . The supply network needs to contribute holistically to the company via innovation and growth, asset utilisation, sustainability, risk management and overall competitiveness as well as cost.

Full Value Supply (FVS) as an approach for creating and implementing longer term strategies for key categories and their suppliers that go far beyond competitive sourcing is the need of the hour By linking supply to competitive business strategies, the goal is to increase the attractiveness and competitiveness of the company’s end products and services, thereby increasing value for both customers and the company.

Eliminate Value Leakage The fi rst level of value that FVS can provide is to ensure that the company is not losing value from a key category. On the revenue side, this means protecting revenue by focusing on the quality of the goods or services being bought within the category as well as the stability of supply, for example availability, lead time duration and predictability.

In the aftermath of global meltdown in 2008 auto OEM.s had initially been building inventory even in the face of falling sales and did not really prepare their suppliers for the imminent slowdown owing to the fear that any advance information would lead to a cut in production at component factories and an eventual lack of supplies.

During the slowdown, auto parts fi rms were forced to cut down production and reduce costs at a lightning speed. The layoffs have come back to haunt the industry. A large number of talented workers have migrated from the component industry to other sectors like infrastructure.

The Tier-II and Tier-III suppliers, especially those in the forging, casting and fabrication industry, who had laid-off skilled and semiskilled labor, found it difficult to get them back and this is proving to be the tightest bottleneck now.

A large number of companies depend on just one original equipment maker (OEM) for bulk of the orders. Typically, the flagship customer accounts for

Contd. on P60

1 - 31 January 2011

VIEWPOINT

Auto Monitor

59

Auto industry needs skills strategy...

Contd. from P54 of the National Skill Policy 2009.

The ADSC needs to be operational. Key work areas and skill sets have been identified, drivers, service mechanics, sales persons and manufacturing workers. For each area, a hierarchy needs to be established, different levels of competencies determined and a curriculum framework devised.

This has to be a participative process and done in 2-3 months.

The HRD Minister has stated that the ministry would adopt these qualification standards and like these to be developed for classes 9, 10, 11and 12, as well

at diploma and degree levels.

Simultaneously, members need to identify supervisors who could be trainers and assessors in various trades. ASDC would then need to develop accreditation and certification procedures. Members should support this by ensuring they look for ASDC certification in the persons they hire. ASDC should also start train-the-trainer programmes. Another opportunity is collaboration among members who have adopted ITIs. A working group could develop and implement agreed curriculum, assessment and certifying systems in adopted ITIs.

ELITE MOLD

Add: No.17 Yongjiang(s)Road Beilun Zone.Ningbo.China P.C.: 315806 Sales Tel: Tracy Lin +86-13706848069 +86-574-86148158 After-sales Tel: Steven Lin +86-13566032563 +86-574-86117178-804 Fax: +86-574-86117138 Email: tracy@cmmould.com.cn www.elitemould.cc

Industry should also set up large training centers to skill 3-4 million persons yearly as established capacity needs to be raised ten-fold. NSDC would be happy to catalyse and provide capital for these initiatives. For those who do not want to do this directly, they could work with their partners to set up such centers.

They can even assist NSDC partners as Ashok Leyland is supporting Gram Tarang and Tata Motors is helping B-Able. There are more NSDC partners like GRAS, Worksills India and others who are seeking support. A way to lend support to training initiatives

would be to demand first-day and first-hour ready-to-work employees and pay a month’s placement fee to these training institutes, and in the event that the training costs are higher than the one month fee, refund training fees to students after 12-18 months of service. This may serve as an excellent retention tool as well.

One of the biggest challenges is to attract people to work in this industry, specially, in difficult areas like welding, press shop and sales in tier-II or tier-III cities.

Here, a partnership with NGOs would be highly beneficial. Work with them to spread the mes-

sage across different villages and habitations to encourage youth to seek training and placement opportunities.

An important aspect would to convey lifelong learning and growth opportunities in the auto sector. There is a war for talent acquisition not only within the automotive industry but also among industries. Quality persons need to be attracted to the idea of working in the industry.

The action agenda could be summarized: operationlise ASDC, set up train-the-trainer centres, establish and/or support large-scale pan-India training ventures, leverage PPPs, explore partnerships with NSDC, encourage employee skilling opportunity programmes, work with NGOs and others to attract people to the industry and recruit, and insist on first-day, first-hour ready certified workers.

The ability of the automotive industry to grow and remain competitive in the next decade would depend on the ability to skill, attract, and retain talent. People would be the bed rock of competitive advantage going forward and individual efforts may not yield desired outcomes. There is a need to work collaboratively with a demand-led model that has scale and sustainability.

As NSDC Chairman Mr MV Subbiah said at the ACMA Annual Convention earlier this year, what is required is industry leadership for transforming the industry’s fortunes. 2011 would be an opportune time to start addressing the challenges of the new decade.

Happy New Year!

(The author is CEO & MD, National Skill Development Corporation. Views expressed are personal).

60

Auto Monitor

1 - 31 January 2011

VIEWPOINT

Auto Supply Chain @ Cross Roads...

Contd. from P56 70 percent of revenues. A lot of suppliers have gone under just because of this over-dependence.

This dependency gives leverage to auto OEM’s at the same time increases the risk of continuity of supply. To minimise value leakage sourcing organisations need to understand the consequences of not sharing supplier risks Component makers don’t really trust car makers when it comes to the potential for orders and growth plans. That’s because in India, only Maruti Suzuki has been able to live up to its volume commitment to suppliers. India was a painfully tiny car market until fi ve years ago and none of the others could achieve Maruti’s scale with their launches. Very few OEM has been consistent with volumes.

Parts makers have been left high and dry without adequate orders after adding capacity. In the North, where Maruti Suzuki has mentored suppliers, a large number of component makers have grown to be leaders in their areas of expertise, many of them with more than Rs1,000 crore in sales.

Some of the success stories are Jai Bharat Maruti (JBM), Krishna Maruti, Mindarika, Lumax and the biggest of them all, Motherson Sumi ($1.6 billion). But take the West. Except Bharat Forge, there are few suppliers with that kind of scale.

Increase Current Value Value creation calls for actions that are more dependent on the specific category situation and often require specialized knowl-

edge and skills as well as a higher degree of insight and creativity.

This would require significant investments of time, effort

Most Indian parts suppliers take the safe and unadventurous route of joint ventures with foreign companies

and expertise in supply base development. Auto OEM’s know this is vital yet there is a gap in intent and action as illustrated below • Most Indian parts suppliers take the safe and unadventurous route of joint ventures with foreign companies, get

their technology, use cheap labour and start stamping the parts. Part of the reason is that they hardly ever get the support of the OEMs. There is always the fear ‘what if something goes wrong?’

However, if a Japanese or European supplier comes with the same part, then companies lap it up even without a complete validation process because it is a used and tested product in another market.

• Component makers are not consulted in the design and development of a product. They are often told to make a part to an OEM’s specification and that’s it. In joint ventures, they are almost always the minor partner because the foreign company owns the technology. And in

some cases, the joint ventures don’t work out as planned.

• Today, as car makers go out in the market scouting for sub assemblies, they fi nd suppliers not up to the standards. When Tata Motors invited quotes for sub-assembly of cockpit and cooling system, it found that most suppliers just don’t have system solutions.

Create Tomorrow’s Value FVS approach could help in taking advantage of the supply base’s technology capabilities to gain competitive advantage in new product, service design and lead time.

Today, the life span is not more than three years. So, any investment in parts capacity has to be recouped in a very short time.

Multinationals like Toyota or Honda follow a common parts strategy and work on processes where a tool can be manufactured for a common part. Indian OEMs’ tool designs are poor and [have a short life]. Such low-grade tools can’t be used for more than 200,000 units. “

Stretch For Additional Value Stretching for revenue sometimes means completely reshaping the supply market to unlock barriers to revenue.

It is one thing to supply for a volume of million cars and another for 10 million cars. TierII and Tier-III players have to consolidate or grow bigger. That would be the toughest challenge.

The Automobile Component Ma nufacturers Association (ACMA) estimates that an investment of $35 billion must be made over the next decade to help car makers realise their targets. But the parts industry invested a mere $1.7 billion in 2009-10, half of the required rate.

Part of the investment gap could be bridged of sourcing organizations use FVS to recast both how it and its suppliers create value in the future. This includes actions like leveraging supplier knowledge and insights to identify consumer and end user marketplace needs to help create unique value for those markets..

In A Nutshell There is significant opportunity for auto industry to use FVS as an approach to enable high trajectory profitable growth. FVS starts with a deep understanding of what customers (both consumers and end users) value and then maps that understanding backwards through the company’s part of the value chain and outward to the supply base. This helps to isolate those categories that are critical to driving value in the end markets. It also allows the company to focus on shaping and using the capabilities of the supply base to complement and supplement its own capabilities, and in turn create more value for the customer and itself. FVS is as much a mindset as an approach.

To be sure, it is often built on rigorous data collection and analysis to understand the value that different customers and segments place on various components.

(The author is Associate Director-Consulting (Supply Chain), PricewaterhouseCoopers Pvt Ltd. He can be reached at suneel.aiyar@in.pwc.com. Views expressed are personal)

62

Defining Technological Breakthroughs Auto Monitor

DEFINING NIN TECHNOLOGICAL BREAKTHROUGHS

Most of the current generation of diesel powered commercial vehicles and passenger cars in India are shifting to common rail injection systems in order to meet the Bharat stage IV emission norms.

The last decade has seen vehicle technology evolve from basic to functional to sophisticated across all segments of vehicles.

Several OEMs opted to simultaneously launch their Indian models alongside global debuts.

Indian customers are increasingly looking for the most current automobile technology and are unwilling to settle for anything lesser. We present ten automotive technologies, which have got increasing ubiquitous in vehicles over the last decade...

AntiLock Braking System

CRDi System The early prototype of the common rail system was developed in the late 1960s by Robert Huber of Switzerland and the technology further developed by Dr Marco Ganser at the Swiss Federal Institute of Technology in Zurich.

But the fi rst successful usage in production vehicles began in Japan in the mid-1990s. Dr Shohei Itoh and Masahiko Miyaki of the Denso Corporation, a Japanese automotive parts manufacturer, developed the common rail fuel system for heavy duty vehicles and turned it into practical use on their ECD-U2 commonrail system mounted on the Hino Rising Ranger truck.

Common rail systems are governed by an engine control unit (ECU) which opens each injector electronically rather than mechanically. This system was extensively prototyped in the 1990s by Magneti Marelli, Centro

Ricerche Fiat and Elasis in close collaboration. After research and development by the Fiat Group, the design was acquired by the German company Robert Bosch for completion of development and refi nement for mass-production. In hindsight the sale appeared to be a tactical error for Fiat as the new technology proved to be highly profitable.

The fi rst passenger car that used the common rail system was the 1997 model Alfa Romeo 156 1.9 JTD and later on that same year Mercedes-Benz C 220 CDI. The Common Rail Injection System uses a common rail to maintain high fuel pressure regardless of engine RPM. This means that the diesel fuel injectors can more precisely meter out

small amounts of fuel at a more precise time in the combustion process. A high pressure fuel pump governed by the engine control unit generates pressures of up to 1,600 bar. Fuel is pushed through ridged tubes to the injectors, which then spray the fuel into the combustion chamber. Early CRD systems relied on magnetic solenoids to control the fuel metering process, but later systems have turned to piezo crystal wafers, which have the notable characteristic of expanding rapidly when an electric current is applied. The precise metering and increased atomisation of fuel results in better fuel efficiency and lesser emissions. CRD engines are quieter and more powerful.

Antilock Braking System (ABS) is one of the most defi ning safety technologies for automobiles.

The technology has been made mandatory in several countries for multiple vehicle class over the last decade. There are four main components to an ABS: speed sensors, valves, pump and controller. The speed sensors, which are located at each wheel, or in some cases in the differential, provide the information on when the wheel is about to be locked up. There is a valve in the brake line of each brake controlled by the ABS. On some systems, the valve has three positions. In position one, the valve is open and the pressure from the master cylinder is passed right through to the brake. In position two, the valve blocks the line, isolating that brake from the master cylinder. This prevents the pressure from rising further should the driver push the brake pedal harder. In position three, the valve releases some of the pressure from the brake.

Since the valve is able to release pressure from the brakes, there has to be some way to put that pressure back. That is what the

1 - 31 January 2010

pump does; when a valve reduces the pressure in a line, the pump is there to get the pressure back up. In 2009 around 75 percent of the worldwide production of passenger cars and light commercial vehicles up to six tonnes were equipped with ABS, according to a Bosch presentation. By 2014 this figure will rise to around 84 percent. Among the BRIC (Brazil, Russia, India and China) countries, India scores lowest in terms of ABS installation of domestically sold vehicles with an estimated installation rate of less than 10 percent of newly registered passenger cars, this compares to 75 percent in China, 58 percent in Russia and 19 percent in Brazil.

Airbags The airbags have come to defi ne in car safety technology which a driver has come to rely upon in case of emergency. A central ‘Airbag control unit’ (a type of Electronic Control Unit) monitors a number of related sensors within the vehicle, including accelerometers, impact sensors, side (door) pressure sensors, wheel speed sensors, gyroscopes, brake pressure sensors, and seat occupancy sensors. When the requisite ‘threshold’ has been reached or exceeded, the airbag control unit will trigger the ignition of a gas generator propellant to rapidly inflate a nylon fabric bag.

As the vehicle occupant col-

Contd. on P67

1 - 31 January 2011

Contd. from P64 lides with and squeezes the bag, the gas escapes in a controlled manner through small vent holes. The airbag’s volume and the size of the vents in the bag are tailored to each vehicle type, to spread out the deceleration of the occupant over time and over the occupant’s body, compared to a seat belt alone.

The first series-production car equipped with an airbag was an S-Class saloon from the Mercedes-Benz assembled in Sindelfi ngen.

According to an earlier US National Highway Traffic Safety Administration (NHTSA) report, the airbag has saved more than 28,000 human lives in the US alone till date. A more recent study by the NHTSA in the US examined the effectiveness of belt and airbag systems, and came to the conclusion that compared to an occupant not wearing a seat belt in a vehicle with no airbag, the statistical probability of fatal injury with an airbag and seat belt is 61 percent lower.

CNG/LPG Kits CNG is made by compressing natural gas, which is mainly composed of methane (CH4), to less than one percent of the volume it occupies at standard atmospheric pressure. It is stored and distributed in hard containers at a pressure of 200–248 bar (2900–3600 psi), usually in cylindrical or spherical shapes. CNG is used in traditional gasoline internal combustion engine cars that have been converted into bifuel vehicles (gasoline/CNG).

Public transportation in major metros including Mumbai and National Capital Region have already converted to CNG and it has been made mandatory for newly registered as well as existing cabs. The CNG refi lling infrastructure in these cities though has not kept pace with growing demand number of CNG powered vehicles. ‘We are looking for ways to deal with peak demand but overall the infrastructure for CNG distribution is much better compared to what it was during the early part of the decade,’ said Managing Director, Mahanagar Gas, VC Chittoda.

He added that coming years will see better refi lling technologies for faster turnaround as well as support from OEMs in terms of extended warranties on original fitment.

Multi Point Fuel Injection Fuel injection is a system for mixing fuel with air in an internal combustion engine. It has become the primary fuel delivery system used in petrol engines, hav ing almost completely replaced carburettors.

A fuel injection system is designed and calibrated specifically for the type(s) of fuel it will handle. Most fuel injection systems are for gasoline or diesel applications. With the advent of electronic fuel injection (EFI), the diesel and gasoline hardware has become similar.

A multipoint fuel injection system generally delivers a more accurate and equal mass of fuel to each cylinder than a carburettor system can, thus improving the cylinder-to-cylinder distribution. Exhaust emissions are cleaner because the more precise and accurate fuel metering.

This reduces the concentration of toxic combustion byproducts leaving the engine. The exhaust

Auto Monitor

DEFINING TECHNOLOGICAL BREAKTHROUGHS cleanup devices such as the catalytic converter can be optimised to operate more efficiently since the exhaust is of consistent and predictable composition.

4-Stroke In 2/3 Wheelers Almost all commercially available motorcycles are driven by four stroke conventional gasoline internal combustion engines. Some are still air-cooled but water-cooling is getting more common. The mid-range and large two-strokes seen in the 1970s and 1980s have almost disappeared as emission laws got more stringent.

Two-stroke engines are mechanically simple and can produce more power from lighter mechanicals than four-strokes, having twice as many power strokes at the same engine revolutions. Even their generally shorter life (linked to marginal piston lubrication) was not a serious impediment.

Four-strokes are generally associated with a wider powerband making for somewhat gentler power delivery. Two-strokes have been largely replaced on motorcycles in developed nations due to their environmental disadvantages. Cylinder lubrication is necessarily total-loss and this inevitably leads to a smokey exhaust, particularly on wide throttle openings. Two-stroke engine motorcycles continue to be made in large numbers but mostly low power mopeds, small scooters and step-throughs where they still compete strongly with four-strokes including the highest selling motorcycle of all time, the 50 cc Honda Cub. The major markets of two-stroke motorcycles are in developing nations.

Dual Spark Plug Ignition A dual spark plug ignition system includes a pair of spark plugs angularly disposed with respect to each other in an engine cylin-

67

der head. One of the spark plugs is electrically grounded to upper surface of the cylinder and other spark plug is electrically insulated, according to document available from US Patent application office.

Each of the spark plugs has a central electrode and a split or forked side electrode and the electric spark of the ignition system is caused to jump air gap between the central electrode of the insulated spark plug and forked side electrode of the grounded spark plug.

The technology has made deep inroad in the motorcycle segment in India and has been a subject of controversy in terms of patent and right to use most notably between Bajaj Auto and TVS Motors.

Engine Control Unit The Engine Control Unit, sometimes referred to as a PCM

Contd. on P68

VC Chittoda, MD, Mahanagar Gas

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Auto Monitor

DEFINING TECHNOLOGICAL BREAKTHROUGHS

1 - 31 January 2011

Contd. from P67 (Power-train Control Module), ECM (Engine Control Module), DME (Digital Motor Electronics), or DDE (Digital Diesel Electronics) is a device that manages fuel volume, ignition timing and various other elements required to keep an engine running.

The ECU reads values from multidimensiona l performance maps using input values such as engine speed which are calculated w ith readings from a variety of sensor devices monitoring engine activity. In the past, air/fuel mixture, ignition timing and idle speed were regulated directly by mechanical sensors and actuators, unlike today’s engines which are almost entirely computer controlled.

In engines with fuel injection systems, the Engine Control Unit (ECU) determines the quantity of fuel to inject based on several different parameters. When

Engine Control Unit

the throttle is pressed down, the throttle body is opened allowing more air to flow into the engine, which results in the ECU reacting by injecting more fuel based upon the increased airflow. In the case of an engine which hasn’t been warmed up, the ECU will inject slightly more fuel causing the engine to run rich until it has properly warmed up. The ECU can minutely adjust

the timing of the spark to optimise both power output and fuel economy, and if it detects any engine knock and decides it is a direct symptom of the ignition timing settings, it will adjust accordingly to prevent it.

In the majority of engine systems, the ECU is also equipped to maintain control over idle speed.

A crankshaft position sensor monitors the engine RPM, and

Turbocharger

this sensor plays a significant role in all aspects of engine timing for fuel injection, spark events and valve timing.

The more sophisticated engine management systems govern the operation of many other systems within the vehicle including electronically-controlled automatic transmissions, traction control

systems, cruise control and antitheft systems.

Turbocharger The turbocharger was invented by Swiss engineer Alfred Buchi in 1905. Diesel ships and locomotives with turbochargers began appearing in the 1920s.

Turbochargers were fi rst used in production aircraft engines in the 1930s before World War II. The primary purpose behind most aircraft-based applications was to increase the altitude at which the airplane could fly, by compensating for the lower atmospheric pressure present at high altitude.

A turbocharger is a small radial fan pump driven by the energy of the exhaust gases of an engine.

A turbocharger consists of a turbine and a compressor on a shared shaft. The turbine converts kinetic energy from the engine exhaust’s velocity and potential energy from the exhaust’s higherthan-atmospheric pressure into rotational kinetic energy, which is in turn used to drive the compressor. The compressor draws in ambient air and pumps it into the intake manifold at increased pressure, resulting in a greater mass of air entering the cylinders on each intake stroke.

Turbocharging is common on diesel engines in automobiles, trucks, locomotives, boats and ships, and heavy machinery.

Compact cars in particular benefit from this technology, as there is often little room to fit a large engine. The turbocharger’s small size and low weight have production and marketing advantage to vehicle manufacturers. By providing naturally-aspirated and turbocharged versions of one engine, the manufacturer can offer two different power outputs with only a fraction of the development and production costs of designing and installing a different engine.

Tailor Welded Blanks A tailor welded blank is made by providing fi rst and second metal sheets having at least one different characteristic from each other. Complementary interlocking structures such as fi ngers are formed on adjoining edges of the fi rst and second sheets. The sheets are interlocked together by engaging the interlocking structures of the fi rst and second sheets. The sheets are then permanently affi xed together by welding of the interlocked edges of the sheets. The tailor welded blank assembly can be stamped or otherwise formed to manufacture a sheet metal article. The technology is getting increasingly popular for sheet metal component applications in passenger car and commercial vehicle segment in India.

(Compiled by Abhishek Parekh)

70

Auto Monitor

1 - 31 January 2011

TECHNOLOGY

Jamie J i T Turner

T

he Lotus Range Extender engine is a purpose designed 1.2 litre in-line 3-cylinder spark ignition (SI) engine for use in plug-in hybrid electric vehicles.

Because of this clearly-defi ned role, some of its architecture can and does differ from the current automotive norm (while not

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deviating from accepted automotive materials and processes which ensures its production feasibility). In this respect it is completely unlike some other potential range extenders such as hydrogen fuel cells and is also less radical than some solutions which can be considered more economically viable such as the Wankel engine or gas turbine.

While both of the latter concepts may be feasible to use as a range extender in the longer term, the Lotus solution of a reciprocating 4-stroke SI engine is believed pragmatic for the present-day, enabling its rapid introduction to an emerging market with minimum risk for new and existing manufacturers alike. This article discusses the rationale for the prototype engine’s design power output and the consequent sizing of the engine, together with

BSFC / [q/kwh]

Lotus Range Extender engine concept

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providing some details of its performance on 95 RON unleaded gasoline (ULG).

The Concept At the outset of the programme, consideration was given to defi ning the power range of the engine. Lotus believes that

Q Brake Termal Efficiency

while it is thermodynamically desirable to target a single operating point for a range extender, provision of a range of power output is in fact very important for practical vehicle operation.

Central to the decision process are two considerations: the drive cycle it is to be assessed on and the desired depleted-battery

maximum speed of the vehicle.

The former helps to set the minimum power insofar as it must effectively be above this level.

In fact, it may be desirable that it be lower for protracted use in cities where the average power can be very low. Hotel loads will clearly cause this end of the operating range to increase, but since the legislated drive cycles do not include a requirement to support high hotel loads these are less of an issue at this end of the power range. The depleted-battery maximum speed of the vehicle effectively sets the maximum power output; here practical levels of hotel load need to be taken into account as they will reduce the power available for vehicle propulsion. Within these limits it is desirable that the brake specific fuel consumption (BSFC) curve of the engine be as flat as possible, since it is envisaged that the engine be capable of operating continuously at any power output between these speeds; this is so that the amount of power being diverted to the battery is as low as possible in normal use, with the bulk preferentially going to the wheels to minimise roundtrip losses via that route.

The power limits for the Lotus Range Extender were determined by modelling to the above approach and set to be 15kW and 38kW at each end. With a target of just under 11bar brake mean effective pressure (BMEP) and an initial maximum engine speed of 3500rpm, this effectively set the engine’s swept volume of 1.2ltr.

Its 3-cylinder configuration was selected after an exhaustive parametric study concerning combustion efficiency, package, noise, vibration and harshness, cost and the ability to spinoff future variants and power outputs. Generally, low mass and good NVH would be desired over ultimate efficiency, since the engine has to be carried all the time and, for most customers, would spend most of the time as a dead weight in the vehicle reducing its electric-only range.

Nevertheless, having arrived at a format satisfying the fi rst two, the best efficiency then possible is desirable. Following this logic, essentially the most attractive competing configurations were inline 2- and 3-cylinder layouts; the triple was selected for reasons of future potential cost down (it being possible to imagine deleting the balance shaft in this configuration and not the twin) and knock control with the new, two-valve-per-cylinder combustion system especially developed for the engine. The combination of a two-valve-per-cylinder combustion system and just under 11bar BMEP at low speed set a severe target for the combustion development team, made more challenging by the

Contd. on P154

Car Carrier

Bottle Carrier

HCV Cargo Body

Pickup Container

Pillarless Container

Container with Taillift

Insulated Van

LCV Container

Refrigerated Van

Cargo Body

Tipper

74

Auto Monitor

TECHNOLOGY

1 - 31 January 2011

Innovative use of chassis dynamometers for the calibration of driveability O

ne of the most time-intensive calibration tasks in vehicle development is the optimisation of driveability. In order to guarantee brand and variant specific driveability, a great number of parameters relevant to vehicle handling must be calibrated. AVL has developed a new approach to driveability calibration that makes an objective, robust and efficient calibration possible on the chassis dynamometer.

Introduction The continuing pressure to reduce costs is leading OEMs towards a growing focus on front loading’. The front loading process shifts tests that would

traditionally be run on chassis dynos to engine or component test beds. Simultaneously, road testing, trials and recently quality testing are being transferred from the road to the chassis dyno. This paper will discuss an approach for such calibration tasks to be completed using chassis dynos.

Model-based Approach for the Calibration of Driveability The classic manual calibration of driveability of the vehicle on the road is carried out by the application engineer using subjective evaluation criteria. These criteria consist of the perceived vehicle’s longitudinal accelera-

tion (absolute value, gradient, oscillations and consistency) and the analysis of the signals corresponding to the driveability functions in the control unit. The

signals for load change manoeuvres are torque build-up, whereas for shift procedures in automatic transmissions the signals are engine torque and clutch pres-

sure behaviour. The set values are fi lter parameters, with which the torque build-up or interventions are affected and other parameters such as fi ll time, fi ll pressure or clutch shift pressure.

The manual approach is limited not only by the mainly subjective evaluation of data but also by additional difficulties such as: differing environmental conditions (road, weather, traffic) leading to low reproducibility of test conditions.

Tests cannot be easily run overnight or over weekends, which combined with short development times leads inexorably to a higher number of prototypes. Due to the increasing complexity of the set values, the application engineer fi nds it more and more difficult to achieve an overview of the complete system.

An objective evaluation of driveability on a chassis dynamometer is both beneficial and pragmatic in order to obtain higher flexibility in terms of test environment, level of automation and efficient utilisation of the test object.

Since the vehicle longitudinal acceleration is not available due to the vehicle being locked in position on a chassis dyno, the acceleration signal must be derived from other sources, in this case, via the force applied by the vehicle on the restraint or via the tractive force applied by the vehicle’s wheels on the rollers. These physical signals make it possible to judge subjective driveability based on objectively measured values.

By running the test on a chassis dynamometer and employing tools to objectivise the driveability, the whole process can now be automated. By doing so, pre-defi ned driving manoeuvres can be run more efficiently and reproducibly. Despite an increase in the reproducibility of the manoeuvres, there is still a spread in the evaluation of the driving events. This is dependent on many factors such as the current oscillatory state of the powertrain or the clutch due to the previous shift.

A large population of tests is necessary in order to provide a statistically fi rm statement in view of the deviation. In order to be able to run a large number of tests in the shortest possible time, the chassis dyno is run in different control modes for the shift quality optimisation. An operating point, defi ned by speed, load and gear number is run via a fast speed ramp. The chassis dyno is only run in road load simulation during the actual driving manoeuvre. This requires that the chassis dyno is capable of a

Contd. on P154

76

Largest Automobile Manufacturing Facilities

Auto Monitor

Maruti Suzuki, Gurgaon Production: 740,000 units Maruti’s Gurgaon manufacturing complex is situated on old Gurgaon - Delhi Road, around seven km from Gurgaon Bus Depot. It is among the largest passenger car manufacturing facility in Asia and is also considered to be one of the most modern facilities in Suzuki’s stable globally.

According to company’s website and annual report, the Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread over 300 acre (1.2 sq km). All three plants have an installed capacity of 350,000 vehicles annually. The Gurgaon complex also manufactures 240,000 K-Series engines

LARGEST AUTO MANUFACTURING FACILITIES

annually. The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. The company’s ‘flagship’ Gurgaon facility manufactures the 800, Alto, Wagon R, Estilo, Omni, Gypsy and Eeco.

In line with introduction of new models and discontinuation of old ones, some of the older production lines were reconfigured, merged and replaced by highly flexible and productive lines with a net increase in output.

Following strong demand , the company created facilities to coproduce the Swift in the Gurgaon plant as well. The Company was able to deliver about 17,000 more Swift cars to waiting customers in

1 - 31 January 2010

Plant

City

Company

2010

Comments

Gurgaon

Gurgaon

Maruti-Suzuki

740000

Maruti and Hyundai are expected to be the three biggest plants crossing 700,000 units each by 2016

Irungattukkottai

Chennai

Hyundai

605000

Manesar

Gurgaon

Maruti-Suzuki

435000

Maruti Suzuki emerged as 4th Biggest plant in India, Started in only 2006

Pantnagar

Pantnagar

Tata

240000

Tata Pantanangar emerged as 5th Biggest plant in India, started in only 2007, Thanks to Ace and Tata Nano

Pimpri

Pune

Tata

225000

Nasik

Nashik

Mahindra

145000

Maraimalainagar

Chennai

Ford

93000

Mumbai

Mumbai

Mahindra

82000

Talegaon

Pune

Chevrolet

81000

Bidadi

Bangalore

Toyota

79000

High Sales of Figo helped Ford to elevate its plant ranking from 10th in 2009 to 7th in 2010 Beat helped GM to sustain its 9th ranking in 2010 Source: IHS Automotive

the year through this initiative.

Maruti Production System or

MPS draws learning’s from its parent company Suzuki Motor

Corporation’s concepts on `lean manufacturing’ under Suzuki Production System. Production consistency has been taken to a whole new level at Maruti’s Gurgaon facility with extensive deployment of robots to achieve production consistency and faster output as well as reduce worker fatigue. The company was able to manufacture over 600,000 vehicles in 2006-07 itself with an installed capacity of just 350,000 vehicles per year. In the Japanese manufacturing system, the central role is accorded, not so much to quality, productivity or cost, but to safety.

Hyundai Motor India,

Irungattukkottai, Chennai Production: 605,000 units Hy unda i Motor India (HMIL) has been present in the country for more than a decade and is among the fi rst multinationals to set up its manufacturing base in Irungattukkottai in Sriperumbudur district near Chennai. It has since grown to become one of the largest passenger car manufacturing facilities in the country and employing an estimated 10,000 skilled and unskilled managers and workers. The facility is spread over an area of close to 2.18 lakh sq metres and is a major landmark in Sipcot Industrial park in Sriperumbudur. Though Hyundai’s Sriperumbudur facility has been instrumental in making Chennai as the major auto hub, the facility itself has seen several disruptions due to worker unrest and strife.

HMIL started construction in Chennai around 1996 and the fi rst Santro rolled out by September, 1998. The facility was set up in record time of around 17 months and it became the second largest car manufacturer in just six months into operations. The facility began rolling out close to 150,000 cars per annum in around 25 months. It manufactures the i10, the i20, the Accent in the Chennai facility and assembles all the other model from Korean manufacturers global line up that are available in India including the Elantra, the Sonata and the Tuscon. The manufacturing facility in Chennai has close to 125 robots for wielding and assembling operations.

Maruti Suzuki,

Manesar, Gurgaon Production: 435,000 units This relatively recent manufacturing facility of Maruti Suzuki has played a key role in

Contd. on P78

78

Auto Monitor

LARGEST AUTO MANUFACTURING FACILITIES

Contd. from P76 meeting demand for higher end models of Maruti and is likely to provide additional output to the largest car manufacturer in India. Maruti’s Manesar facility was inaugurated in February 2007. The plant currently rolls out company’s strategic models including the Swift, the A-star, the SX4 and the Swift DZire.

The facility boasts of high degree of automation and robotic control in the press shop, weld shop and paint shop to help manufacture passenger cars with precision, quality and speed. The Manesar facility is designed to be flexible with capability of manufacturing different car models with automatic tool changers, centralised weld control system and numerical control machines.

The plant at Manesar is Maruti’s fourth assembly plant and has a capacity of 300,000 cars per year.

The company has announced an investment of `1,700 crore to

Robots performing welding operation at Hyundai’s Irungattukkotai facility

expand its capacity by 250,000 units by 2010.

Tata Motors,

Pantnagar, Uttarakhand Production: 240,000 units Tata Motors’ Pantnagar facility has been primarily set up to manufacture its mini-truck Ace and the passenger carrier Magic

based on the Ace platform. The plant began commercial production in August 2007. This is the company’s fourth facility, after Jamshedpur (commercial vehicles), Pune (commercial vehicles and passenger vehicles) and Lucknow (commercial vehicles).

The facility is spread over estimated 953 acre including 337 acre

occupied by the company’s major suppliers in the vendor park.

The facility includes weld shops, paint shops, engine and gear box shops and assembly lines. The company has invested over `1,000 crore in the plant.

Vendors for the vehicle have made additional investments to set up their respective plants in the vendor park adjoining the plant. The manufacturing complex enjoys tax benefits from Uttarakhand government and helps the company to cut manufacturing cost and remain competitive. It has generated about 7,500 direct and indirect jobs in the plant, among vendors and service providers in the area, according to the company’s estimate. The Pantnagar facility recently won the fi rst prize in automobile manufacturing sector in National Energy Conser vat ion Awa rds-2009 instituted by Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India.

1 - 31 January 2011

Tata Motors,

Pimpri, Pune Production: 225,000 units Tat a Motor s’ P u ne facility is spread over two geographical regions- Pimpri (800 acre) and Chinchwad (130 acre) on the outskirts of Pune close to Mumbai-Pune expressway. It was established in 1966 and has a production engineering division, which has one of the most versatile tool making facilities in India.

The Passenger Car Division executes the entire process of car manufacture over five shops - the engine shop, the transmission shop, press and body shops, paint shop and the trim and fi nal assembly shop. The shops are fully automated ensuring that there is minimal chance for error in the manufacturing processes. After the car is completely assembled, it goes through several checks like wheel alignment, sideslip test, brake test, shower test, and a short test run before it is ready for dispatch.

The Pune facility houses a vehicle manufacturing complex which is one of the most integrated automotive manufacturing centres in the country producing a large variety of individual items and aggregates. It is engaged in the design and manufacture of sophisticated press tools, jigs, fi xtures, gauges, metal pattern and special tools, as well as models for the development of new ranges of automobile products.

Its capabilities have enabled Tata Motors to introduce new products and improve existing ones without resorting to imports of dies or fi xtures.

The facility has developed expertise in design and manufacture of automated dies, fi xtures and welding equipment.

Its large design group is equipped with CAD facilities and light and heavy CNC machine shops, jigs boring room, plastic template shop, wood pattern and model pattern shop, five axis precision machine tools and laser control machines. There are four assembly lines in the Pimpri facility one each for Medium Commercial Vehicles and Heavy Commercial Vehicles, Light Commercial Vehicles, utility vehicles and one for passenger cars (Indica and Indigo). The Pune plant bagged the fi rst prize in Safety, Health & Environment (SHE) competition organised by the Confederation of Indian Industry (CII), Western Region for the year 2009-10.

Mahindra & Mahindra,

Nashik Production: 145,000 units Mahindra’s Nasik facility kicked off in February, 1981. It has rolled out more than eight lakh vehicles till date. The plant provides employment to around 3,719 workmen and around 1,310 engineers. The plant has a current production capacity of 1.5 lakh vehicles per annum comprising the Scorpio Range, the Bolero Range and the recently launched Logan. The total area of the plant is 113.14 acre with a built up area of 42.01 acre. The Nasik plant comprises press shop, body shop, CED line, paint shop and assembly.

Some of the recent upgradation in equipments and technology at the Nashik facility includes new press lines, PTED line, robotic painting facility, robotic roller hemming facility, integrated transformer guns and

Contd. on P81

Intergrated INNOVATION QUALITY

DELIVERY

TESTING

DEVELOPMENT

Manufacturing DESIGN

SATISFACTION

DURABILITY

COST

APPLICATIONS Three Wheelers Passenger Cars Light Commercial Vehicles Heavy Commercial Vehicles Buses

1 - 31 January 2011

Auto Monitor

LARGEST AUTO MANUFACTURING FACILITIES

81

Contd. from P78 dexterity schools. The Nasik plant has received several awards and accolades in various fields including national award for Excellence in Water Management 2006 by Confederation of Indian Industry.

Ford India,

Maraimalainagar, Chennai Production: 93,000 units Ford India’s Maraimalainagar facility covers 350 acre, provides employment to about 2,000 skilled and unskilled managers and workers. The facility has recently been extended and upgraded to accommodate manufacturing of increasingly popular compact car Figo. The Maraimalainagar facility was set up with an initial investment of around ` 1,700 crore. Some of the equipments and facilities at the plant include semi-automatic press line, body shop, trim zone and quality testing.

‘Though facility is geared up for lower volumes, it may not be long before the facility is upgraded to cater to high volume production and dispatch. When Ford comes out with additional models in the compact segment, it would need a flexible assembly line for multiple models,’ says a prominent supplier to passenger car segment.

Mahindra & Mahindra,

Kandivali, Mumbai Production: 82,000 units Mahindra’s in Kandivali is one of the few facility located in an urban area surrounded by residential localities on all sides.

The Kandivali plant is devoted to the production of Pick-Ups including Bolero Flat Bed, Maxx, Maxx Maxi Truck and Soft Tops.

M&M’s Kandivali facility was inaugurated in October 1964.

The total area of the plant is around 63 acre with a built up area of 26.92 acre. The plant provides employment to around 3,060 skilled and unskilled workers including 2,435 workmen and 625 engineers.

The facility has machining lines for engine (cylinder block & head), transmission (gears, shafts and housings) and axle (housings and gears) along with heat treatment shop, press shop and tool room. The paint shop is equipped with water based dip priming line, a surfacer line and top coat line. The grey cast iron foundry manufactures critical components like cylinder head and cylinder block. The daily production capacity at the plant is about 200 vehicles units, 200 engines units, 540 transmissions units and 1000 axles units, according to the company’s annual report and website.

The facility has been recently upgraded with current technologies in the areas of mapal toolings, cut cycle hypoid cutting, hard turning, vacuum furnace, CNC machines for gear cutting, standard gears, sand mixer for foundry. The Kandivali plant is OHSAS 18001 certified for occupational health and safety management system. It has also received National Energy conservation award for four years in succession.

General Motors,

Talegaon, Pune Production: 81,000 General Motors plant in Pune in located on the outskirts of the city in Talegaon and was set-up with an investment of around

Final assembly of the Swift Dzire conducted at Maruti’s Manesar facility

$300-million in 2006. The facility has the capacity to manufacture 140,000 Chevrolet Spark and has flexible manufacturing lines for multiple models. There is adequate land within the premises to further expand the production to 220,000 units per annum. GM India recently set up an engine manufacturing unit with an

investment of around $230 million (around `1050 crore) with a capacity of around 160,000 engines per annum.

GM India is gearing up to launch two compact hatchbacks and a multi-purpose vehicle this year in association with its Chinese JV partner Shanghai Automotive Industry Corporation (SIAC).

Final inspection conducted on the Scorpio at M&M’s Nashik facility

Toyota Kirloskar Motors,

Bidadi, Bangalore Production: 79,000 units Toyota Bangalore facility is benchmarked and tuned to its global production system. It manufactures its multi-purpose vehicle Innova and its mid-sized sedan Corolla at the Bangalore facility in addition to assembling

the Camry and the Fortuner at the facility. Many of its Japanese suppliers are located in the vicinity enabling it to effectively implement the famed Toyota Production System (TPS) to cut cost and raise efficiency by reducing waste in the production cycle (Compiled by Abhishek Parekh)

84

Auto Monitor

TECHNOLOGY

1 - 31 January 2011

Green Paintshop: Energy and resource efficient technology for automobile painting Dr Ing Pavel Svejda

E

fficiency and sustainability, these are the great trends of our time – and rightly so. Natural resources are restricted, and rapidly increasing energy demand, particularly in the growth markets of the newly industrialised countries, pose great challenges for national economies. In recent times, vehicles have been rated according to their CO2 output rather than their fuel consumption. In order to lower this, new drive concepts have been developed that go as far as electro-mobility. In vehicle manufacturing as well, solutions are in demand that lower energy consumption and thus the CO2

emissions, and handle available resources carefully.

In the course of its ‘life’, a vehicle emits on average twenty-one tons of carbon dioxide, which help cause the greenhouse effect.

About twenty percent of this is already released during production. Seventy percent of the energy needed for production is used in

the paintshop. This is the same amount that is consumed in a city with fi fty thousand inhabitants.

Worldwide energy consumption is increasing rapidly. Among the ten largest consumers, Germany ranks in seventh place, and all four BRIC states (Brazil, Russia, India, China) are included. For the first time, China overtook the USA as

the largest energy consumer. A Chinese person, however, uses clearly less energy than people in western countries: a fifth of what an American needs and forty percent of the consumption usual in Western Europe. What happens, however, if he increases his energy consumption to the western level?

Energy Consumption During Vehicle Production We must fi nd other ways. One way that is already feasible is the increasing use of regenerative energies, the efficient handling of them and of our resources.

The trend goes towards socalled shortened, lean processes in which individual process steps are eliminated. With primerless painting processes, which are mostly based on waterborne paint technology, the base coat must take over the primer properties. The special feature of the 3wet process, where increasingly high-solid paint systems are used, is that all three paint coats are applied in one painting line, wet in wet, that is, without intermediate drying. With both processes, the separate primer painting line as well as the subsequent dryer are omitted. The advantages: compact installations, reduced investment and operating costs, positive ecological balance.

Ever y pa inting process begins with the pre-treatment and the following dip-coating.

Here the rotation procedure has prevailed. With the RoDip technology, especially spacesaving layouts can be realised.

The missing inlet and outlet slopes, however, not only shorten the installation length, but also reduce the tank volumes.

This is combined with lower material and energy costs, the latter are about thirty-fi ve percent lower compared with the conventional shuttle. Based on these advantages and a smaller waste water amount due to the rotation, a unit cost savings of almost sixteen percent per body is the result in a sample calculation for an installation with an annual throughput of three hundred thousand bodies.

This doesn’t take into account the better quality due to minimization of soiling, runners and drips. In comparison with conventional fi lter systems, an energy saving of more than thirty percent is achieved.

EcopaintRoDip V A majority of the energy that is used in a paintshop is needed for the necessary air preparation, indeed just less than sixty percent. Recirculation of the booth air would save a considerable part of this energy.

A clearly improved effi ciency of the overspray scrubbing as compared with the wet scrubber and no humidity increase as it occurs during the wet washout is a pre-condition for that. Dürr’s EcoDryScrubber is based on the principle of dry scrubbing with the aid of limestone powder as a binding agent for the paint particles. The particle-loaded booth air is guided through fi lter modules on whose surface the solid

Contd. on P118

S

e l l o w r a p

manufacturing Pvt. Ltd. was awarded a

certificate of recognition for excellence in quality and productivity in the SME category this year at the recently concluded ACMA Annual Session.

Sellowrap manufacturing (Gurgaon plant ) is the

Sellowrap Manufacturing wins laurels at the annual ACMA convention

flagship company of the SK group that develops and manufactures high -

quality cellular foam products, blow films and plastic moulded components for the auto, white goods& telecom industry. The Sellowrap manufacturing (Gurgaon Plant) is accredited with TS16949: 2002,ISO 14001: 2004, OHSAS18000:2007, certifications since 2005.

Business Associates

MANUFACTURING PLANT UNIT I Plot No. 54, Sector-18, Maruti Industrial Estate Gurgaon - 122015, Haryana, India.

Tel: + 91 - 124 - 4015973 / 74, 2340660 / 61 Fax: + 91 - 124 - 4015975

UNIT II Plot No, D-57 & 58, MIDC Industrial Estate, Ranjangaon Industrial Area, Taluka Shirur, District - Pune - 412220, Maharashtra (India) Tel: + 91 - 2138 - 660766 / 67 Fax: + 91 - 2138 - 670124

CORPORATE OFFICE: 202, 2nd Floor, Abhihshek Building, C-5, Dalia Estate, New Link Road, Andheri (West), Mumbai - 400 053 (India) Tel.: +91 22 66750560, +91 22 67076268 | Fax: +91 22 66750561 E-mail: contact@sellowrap.com | www.sellowrap.com

Fast Growing Component Makers 86

Auto Monitor

Auto Monitor, in association with Anagram Stcokbroking, has identified the fastest growing auto component manufacturers in country over the last decade.

We profi le the auto component manufacturing companies, which made the mark:

Balkrishna Industries Balkrishna Industries (BKT) is the flagship company of the Siyaram Poddar Group, engaged in manufacturing specialty tyres used by the agriculture and Off –The-Road (OTR) segments. The company has one of the widest range of tyres in the industry with close to 1,900 Stock Keeping Units (SKUs) with installed capacity of around 160,000 MTPA. The company exports around 90 percent of the product manufactured mainly to Europe and US. Europe accounted for around 51 percent of the revenues while 19 percent of the revenues came from servicing demand in the United States. The company has over 200 distributors in more than 120 countries. Some of the major OEM customers include Volvo, John Deere, CNH, Class, Bomag, Same, JCB among other tractors and earth moving/construction equipment manufacturers.

Industry estimates suggests that earth moving and construction equipment sectors in India are expected to grow by around five times by 2015 from $2.3 billion to $12-13 billion aided by rapid infrastructure build up.

The company is exploring newer

1 - 31 January 2010

FAST GROWING COMPONENT MAKERS

ROE

EBITDA Margin

Sales

Net Profit

Company Name

Mcap

D/E

3 yr Avg

3 yr Avg

CAGR

2010

2002

CAGR

2010

2002

Balkrishna Inds

1443

0.83

28%

18%

29%

1527

201

56%

219

6

Apollo Tyres

3233

0.78

25%

12%

25%

8121

1377

42%

657

40

Lumax Auto Tech.

232

0.2

25%

8%

31%

417

48

41%

23

1

Motherson Sumi

7217

0.73

27%

9%

48%

6702

296

40%

248

17

Exide Industries

13796

0.19

38%

17%

23%

4421

826

40%

493

34

Setco Automotive

210

1.88

29%

14%

36%

256

22

36%

14

1

Bosch

19258

0.08

21%

16%

16%

4810

1451

27%

527

78

Bharat Forge

8910

1.21

13%

18%

20%

1814

410

26%

137

21

Amara raja

1550

0.40

30%

15%

31%

1465

164

32%

167

18

Wabco TVS

1961

0.14

33%

18%

3%

591

534

4%

79

70

Source: Anagram Research Notes : D/E lower than 2; 3 year average ROE of more than 12 percent; PAT and sales CAGR of more than 12 percent in past 8 years; Bharat forge figures are on standalone basis; Wabco TVS sales and profit is for past 3 years; sales and NP in `cr markets in Russia & CIS countries and enhancing product lines by adding mining tyres, agriculture radial tyres and puncture proof tyres for defence applications. Labour cost advantage is significant which has helped and is likely to continue helping the company to penetrate in USD 11.5 billion global OHT market and expand its market share significantly.

Apollo Tyres Apollo Tyres is one of the leading players in the domestic tyre market with dominance in the vital Medium & Heavy Commercial Vehicle segment.

It hold around 28 percent market share in truck & bus tyres segment compared to 19 per-

cent for its closest competitor.

Its product range includes truck and bus cross-ply tyres, light truck cross-ply tyres, agriculture & farm equipment tyres mainly manufactured at the company’s Kalamassery and Perambra plants near Cochin.

It also manufactures passenger car, truck & bus, light truck, farm equipment radial tyres mainly manufactured at Limda facility near Baroda in Gujarat.

Apollo ventured outside India in 2006 with the acquisition of Dunlop Tyres International in South Africa (since renamed as Apollo Tyres South Africa Pty) and Zimbabwe. The company holds brand rights for the ‘Dunlop’ brand across 30 African countries. In 2009, Apollo

acquired Vredestein Banden BV in the Netherlands to cater to the European market.

It also has facilities located in South Africa, Zimbabwe and Netherlands for catering to African, European and Latin American markets. In the three domestic markets of India, Southern Africa and Europe, Apollo operates through a network of branded, exclusive or multi-product outlets.

Exports from facilities in India, South Africa, Zimbabwe and Netherlands reach over 70 destinations across the world, with key markets comprising Europe, Africa, the Middle East and South-East Asia.

The company is expanding capacity, ahead of its peers, to

leverage on the structural shift from cross-ply to radial. The company’s sales are expected to grow at 15 percent Compounded Annual Growth Rate (CAGR) over 2010-13 period and Profit After Tax (PAT) to grow at 17 percent over the same period, mainly due capacity addition, increase in gross realisation due to rubber price increase and change in product mix. The company’s positioning is supported by its strong distribution penetration (4,000 dealerships and 2,000 exclusive outlets, largest in the industry).

Lumax Auto Technologies Lumax Auto Technologies, a part of the DK Jain Group, is a major supplier of sheet metal parts, fabricated assemblies and tubular parts for two-wheeler and three-wheeler segments.

It has a technical collaboration with Cornaglia Group. It manufactures and supplies chassis frame assemblies for motorcycles, exhaust systems for scooters, petrol tanks, sheet metal and tubular parts and parking brakes.

Lumax Auto generates around 80 percent of its revenues from the OEM segment.

Motherson Sumi Systems Motherson Sumi Systems (MSSL) is the flagship company of the Samvardhana Motherson Group (SMG). It was incorporated in 1986 as a joint venture between Sumitomo Wiring Systems (SWS),

Contd. on P88

Email : infovri@dana.com

Regd. Office : Plot No A-20, Navlakh Umbre, MIDC Talegaon, Taluka- Maval, Pune- 410506 ( India ) Tel: 02114 - 392100 / 392109 Fax: 02114 - 392118

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1 - 31 January 2011

Contd. from P86 Sojitz Corporation and SMG (promoted by the Sehgal family). It has a well diversified product portfolio with presence in wiring harness, polymer products, rear view mirrors and rubber/metal components.

It is a major supplier to most of the OEMs in India for wiring harness and rear view mirrors.

FAST GROWING COMPONENT MAKERS national market, the products are sold mainly under Dynex, Index & Sonic brands.

The Company has a distribution network comprising over 4,000 exclusive dealers. These outlets are supported by four regional offices and 28 branch offices. The Company exports batteries to the Middle East, Japan and CIS countries. The company

The ranking has been compiled after considering past performance (>12 percent earnings CAGR over 8 years), good return ratios and low leverage. Apart from the historical quantitative performance, companies with strong business model (superior technology, high marketshare and pricing power) and good quality of management have been considered.

Earnings CAGR = Compounded annual growth rate in earnings from 2002 to 2010.

Return on Equity = Net Income/Shareholder’s Equity Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.

Leverage is measured by Debt/Equity ratio.

Its product range includes wire harness, plastic molding, injection molding tools, rubber molding & extrusions, sunroofs, vehicle air conditioning systems, HVAC systems & modules, refrigeration systems, lighting, air intake & pedal box modules and cabins. It also provides design and engineering services and precision metal machining.

MSSL has presence in 21 countries including nine manufacturing locations in India (Noida, Gurgaon, Manesar, Faridabad, Pune, Bangalore, Chennai, Kandla, Lucknow & Puducherry) across five continents- Asia, Europe, North America, Africa & Australia to support its customers. MSSL’s diverse global customer base comprises of almost all leading automobile manufacturers globally.

In March 2009, MSSL acquired Visiocorp (renamed as SMR), a global leader in rear view mirror (around 25 percent market share) from bankruptcy proceeding, resulting in a major evolution in the business mix.

MSSL meets around 65 percent and around 48 percent of the domestic passenger vehicle demand for wiring harnesses and rear-view mirrors respectively. It meets around 25 percent of the global demand for passenger vehicle rear view mirrors. Being a supplier of choice, it has adequate pricing power to protect its profitability.

Exide Industries Exide is the leading battery manufacturer in India and offers a wide range of storage batteries, ranging from 2.5 ampere hours to 15,000 ampere hours, which have both automotive and industrial applications. The company has six battery manufacturing facilities in India and two lead smelters plants. Exide has an extensive sales and distribution network, which includes 38,500 retail outlets for the aftermarket sales. Exide is a supplier to most of car, commercial vehicles, two and three wheelers including Genera l Motors, Toyota, Hyundai, Tata Motors, Maruti, Fiat, Ashok Leyland, Renault and Honda. Around 80 percent of car manufactured in India are fitted with a battery manufactured by Exide. In the domestic market, the company sells its products under brands including Exide, SF Sonic and Standard Furukawa. In the inter-

has a market share of around 72 percent in case of automotive OEMs and 70 percent in case of organised retail. The company also manufactures submarine batteries.

It acquired a 100 percent stake in Caldyne Automatics in July 2007 and 100 percent stake in Chloride Batteries S E Asia, Singapore and 49 percent stake in Associated Batter y Manufacturers (Ceylon), Sri Lanka in the year 2001 with the primary objective of expanding its distribution footprint in these countries.

The company holds a 50 percent stake in ING Vyasa bank. Exide is the market leader in batteries with a strong brand equity and widest distribution reach deriving close to 60 percent of its revenues from the automotive segment and remaining 40 percent from the industrial segment.

Auto Monitor

Setco Automotive Setco Automotive is the largest manufacturer of clutches for M&HCVs (Medium and Heavy

Motherson Sumi Systems caters to around 25 percent of the global demand for passenger vehicle rear view mirrors.

It has adequate pricing power to protect its profitability

Commercial Vehicles) applications in India - catering to both OEM & aftermarket segments.

Setco meets 75 percent of the M&HCV clutch demand in India at the OEM level. New clutches to comply with new emission norms account for more than 2/3rd of

89

the supplies in HCV segment and over 50 percent of company’s OE sales. These clutches being of higher value shall enhance company’s revenues.

Bosch Bosch offers single cylinder pumps, multi cylinder pumps, distributor pumps, injectors, electronic diesel control in addition to common rail injection systems for diesel vehicles.

It is a dominant supplier of gasoline systems, chassis braking systems and car multimedia systems in the Indian market. Fuel injection equipment sales constitute around 57 percent of revenues for Bosch. Fuel injection being key product of auto diesel engine, Bosch is likely to benefit from dieselisation of Indian automobile market.

Bosch has about 81 percent

Contd. on P91

1 - 31 January 2011

FAST GROWING COMPONENT MAKERS

Auto Monitor

91

Contd. from P89 market share in the fuel injection equipment space in India.

The company has leadership positions in areas such as antibraking systems, traction control systems and electronic stability program. Bosch’s Indian unit has earned a place for itself, within the global set-up, as a ‘Centre of Competence’ for single cylinder pumps, multi-cylinder inline (‘A’ and ‘P’ type) and distributor pumps (mechanical and electronic type). In addition to the range of mechanical pumps, the company with the support of German parent has introduced Electronic Diesel Control (EDC) systems such as Distributor pumps (Electronic type) and Common Rail Systems (CRS) in India. It has also been growing its presence in the lucrative aftermarket with around 1,800 Bosch service stations which offer automotive parts and accessories, diagnostic equipment and service as well as service & repair with quick turnaround.

Bharat Forge Bharat Forge (BFL) is a leading global ‘Full Service Supplier’ of forged and machined - engine & chassis components. It is the largest exporter of auto components from India and leading chassis component manufacturer in the world. With manufacturing facilities spread across eleven locations in five countries, the company manufactures a wide range of safety and critical components for passenger cars, Sports Utility Vehicle’s (SUVs), light, medium & heavy commercial vehicles, tractors and diesel engines.

Its product range include open & closed die forgings, crankshafts, front axle beams, steering knuckles, connecting rods, rocker arms, transmission parts, hubs, and components for oil & gas sector.

BFL’s successful evolution and growth has been helped by its ‘Dual Shore’ manufacturing model ensuring smooth supply of components under all circumstances while providing a long-term cost advantage. The concept involves establishing more than one manufacturing location for all core components.

The company’s capabilities include designing and engineering components, tooling and die manufacturing, heat treatment, machining and inspection & testing. It is one of the few auto component manufacturers to have successfully established a joint venture in China with FAW. BFL is targeting 40 percent of its revenue from non-auto segment by 2012. It will be investing Rs1,900 crore in JV with National Thermal Power Corporation.

BFL registered strong growth in commercial vehicle space for products like crankshaft, axle beams and connecting rods as it commands market leadership in this segment.

Amara Raja Batteries Amara Raja Batteries is a joint venture between Amara Raja Group and Johnson Controls with 26 percent stake held by the foreign partner. It is one of the leading manufacturers of lead acid batteries for both industrial and automotive applications in the Indian storage battery industry.

The company is the preferred supplier to major automobile companies, telecom service providers, telecom equipment

manufacturers, UPS Segments (OEM & Replacement), Indian railways, power and oil & gas among other industry segments. It manufactures and sells automotive batteries under the brand name ‘Amaron’ which is distributed through a pan India sales-service retail network. The company supplies automotive batteries to Ashok Leyland, General motors, Honda, Mahindra & Mahindra, Maruti Suzuki, Hyundai and Tata Motors. The company is an exclusive supplier to Ford and Swaraj Mazda. The company’s industrial and automotive batteries are exported to Asia Pacific, Africa and the Middle East.

Amara Raja Batteries currently derives 50 percent of its revenues from the automotive and industrial battery segments. About 65 percent of automotive sales are in the aftermarket segment while the rest are largely OEM supplies. High exposure to the telecom tower segment (around

25 percent of revenues), where tower additions slowed down over the last year, has negatively impacted the company’s fi nancial performance.

WABCO TVS

include the world’s leading commercial truck, trailer, and bus manufacturers.

TVS Group and CDH, both

WABCO TVS has a

WABCO TVS came into dominant 80 percent market existence as a demerged share in the CV braking entity of the erstwhile Sundaram Clayton. It is systems in India. It is well the leading supplier of positioned for continued air and air assist actuasuperior operational tion systems for brakes to the commercial vehiperformance backed by cle industry in India. expected strong growth in The products include air domestic and exports compressors, actuation systems, control valves, market for CV anti-lock brake systems and electronic brake systems. being promoters of SCL are also WABCO is one of the world’s the promoters of the compaleading providers of electronic ny with the same percentage of braking, stability, suspension shareholding as in SCL, prior to and transmission automation demerger. CDH is an indirectsystems for heavy-duty commerly owned subsidiary of WABCO cial vehicles. WABCO’s customers

Europe BVBA, a private limited liability company incorporated in Belgium. WABCO Europe BVBA is an indirectly owned subsidiary of WABCO Holdings Inc, US, a company incorporated in the State of Delaware, USA. The company has a dominant 80 percent market share in the CV braking systems in India. WABCO TVS is well positioned for continued superior operational performance in future backed by expected strong growth in the domestic and exports market for CVs (larger parent manufacturing moving to India operations). Being the successor of the brakes business of Sundaram Clayton, the company has earned reputation as a developer and supplier of air brake actuation systems in India.

(Compiled by Abhishek Parekh)

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Tel.: +91 22 66750560, +91 22 67076268 | Fax: +91 22 66750561 E-mail: contact@sellowrapepp.com | www.sellowrapepp.com

1 - 31 January 2011

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Indian components sector: Riding the tide ICRA has forecasted automobile sales volume growth, and in turn the auto ancillary business growth to hold over the short-to-medium term aided by strong underlying domestic demand across all vehicle segments, thrust on low-cost sourcing by Original Equipment Manufacturers (OEMs) and Tier-1 players based from developed markets, aggressive supplyside push from automotive Original Equipment Manufacturers (OEMs) in the form of new model launches and expected continuation of facilitators like easy access to vehicle financing, notwithstanding possible challenges related to pressures on commodity prices, interest rate hardening and fuel price deregulation. Excerpts:

Sustainable Growth However, the industry profitability may face pressures due to pricing pressures from OEMs, threat of rising commodity prices, likely higher cost of funds consequent to hardening of interest rates and import from other low-cost locations. In addition, companies engaged in select product categories within the auto components industry are expected to incur large capex for enhancing production capacities to meet the growing demand, which could affect the capital structure and return metrics of such companies over the short term. However, in ICRA’s view, the anticipated strong business growth should result in healthy cash accruals and enable such companies to tide over the short term pressures and emerge with a stronger credit profi le over the medium term.

Other risks to growth and profitability of the Indian auto components industry include increase in competition from other countries to capture business opportunities both in the international as well as domestic markets, uncertainty arising from currency volatility and ability to acquire capabilities in tune with technological advancements.

Domestic Market Recovery The strong recovery in domestic sales volumes across vehicle segments since the second quarter of 2009-10 has enabled most auto component manufacturers that were dependent on the domestic market to grow in tandem with the automobile sales volume growth. The pace of growth in some segments has been unexpectedly sharp because of which certain component suppliers have found it difficult to meet OEM demand due to capacity constraints in their supply chain. These bottlenecks are however being corrected and are unlikely to be a major factor in the coming periods. Besides strong underlying demand, growth in the auto industry has also been amply supported by the spate of new models launched by OEMs as well as maiden entry of several new OEMs into the Indian market which has provided a fi llip to the demand.

Most players that had deferred or suspended their capex outlay in 2008-09 and 2009-10 are now actively drawing plans to incur large capex over the shortto-medium term to meet the growing demand and avoid market share losses. Some of the key

product categories with relatively constrained capacity are batteries, tyres, steering systems, sheet metal body parts and certain ferrous cast products – areas where the quantum of capex is likely to be much higher than others.

Profitability Improvement Low asset turnover due to slowdown in demand and high fi xed-cost structure had made an adverse impact on the profitability of auto industry participants in 2008-09. The severity of stress was not uniform across the industry and was more pronounced in case of suppliers to the M&HCV segment and those that were heavily dependent on exports to Europe and the USA. While the domestic M&HCV demand has recovered, prospects of sustained recovery of

Trend in Turnover, Exports and Imports of Auto Components Industry

25 20 15 10 5 0 2004-05

2005-06 2006-07 2007-08

Q Turnover

Q Exports

2008-09

2009-10

Q Imports

Source: ACMA

exports to developed markets remain uncertain. The period of downturn forced most companies to aggressively pursue cost control initiatives in the areas of component and process VA-VE (value analysis/ value engineering), manpower cost rationalisation and

productivity improvements. The benefits of these measures have been clearly on display over the last several quarters, whereby the profit growth of industry players has outpaced revenue growth.

While ICRA expects the growth momentum to sustain over the

medium term, the uptrend in commodity prices is expected to push up raw material costs as a proportion of revenues for auto component manufacturers and make an adverse impact on the margins of the industry. Car sales growth in Western Europe is expected to remain negative in CY2010 due to withdrawal of government scrappage incentives.

This holds a considerable importance for the Indian component suppliers, as Europe and USA together account for over 60 percent of component exports from India. Europe alone accounts for around 37 percent of India’s component exports. An added concern remains the weakening of the USD and the Euro against the INR which has hurt export profitability. Apart from exposure to overseas markets through

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Positive outlook for CV, passenger car segment in coming months T

he sales trend in the closing months last year indicated that though consumer demand has been strong the seasonal impact on purchases has started to set in, according to an automobile industry report from ICICI Securities. The volume growth of the industry till date has been around 29.2 percent with the passenger car (PV) segment growing by 25.6 percent, commercial vehicle (CV) segment growing the fastest at 38.6 percent while the largest segment, two-wheelers, is growing at 29.2 percent on Year Till Date (YTD) basis. The demand has continued to remain robust. This has led to strong interest among various players across segments

ranging from PVs to luxury buses to launch various new models to garner a higher share of the increasingly attractive domestic market pie.

OEM Capacity Expansion Auto OEMs have seen strong demand, which has been hugely structural in nature pushed by higher rural incomes and increasing propensity to spend on part of the urban counterparts. This has resulted in strong expansion plans getting under way for major players such as Honda, which is expected to start a third plant in Andhra Pradesh along with another plant that is under way in Rajasthan of capacity around 0.6 million units. Similarly, com-

mercial vehicle major Volvo is expanding its existing plant and setting up a new engine plant, which is expected to have a capacity of 85,000 units.

Input Cost Pressure Input prices have seen a consistently upward curve due to reasons ranging from Chinese inflation to ample liquidity causing speculation to production shortfalls due to natural factors.

The steel, aluminium and plastics prices continued to increase in the range of 20-50 percent on a YoY basis mainly due to pro-

duction cutbacks emerging from China on account of increasing domestic inflation along with production constraints in the rest of the world. Natural rubber prices have gone through the ceiling and are hovering consistently around `200 per kg (around 80 percent higher on a YoY basis).

Two-Wheelers The two-wheeler industry has seen a relatively sedate month with a dip on a sequential basis at 29.2 percent YTD with market leader Hero Honda continuing to post strong double digit growth in the domestic market. Bajaj Auto sales stood at 299,231 units, an increase of 8.1 percent YoY and a higher than anticipated 19.3 percent decline on a MoM basis due to slower exports and sedate growth post the festive euphoria. TVS Motors was impacted sequentially by a decline of around 20 percent on the back of a high base in the festive season. Hero Honda Motors registered volumes of 421,366 units, an impressive 10.5 percent YoY rise on a large base.

Three-Wheelers The three-wheeler segment witnessed a moderation in the domestic and export market with flat YoY growth and 16.7 percent MoM decline with a slower export offtake due to constraints.

Exports were down 7.8 percent YoY and 17.7 percent MoM at 90,869 units. Its contribution remained at 30.4 percent of the total sales.

Four-wheelers Commercial vehicles have seen strong growth in this whole fiscal with YTD growth of 38.6percent. They are expected to gain traction in the remaining months of the fi scal, which is traditionally stronger. The strong GDP growth and increase in freight activity is expected to continue for the year and would help maintain momentum in CV sales. The passenger car market has again seen newer product launches in a host of categories from the A2 segment to the premium segment. Raw material prices remain an overhang with rising prices across all major commodities. However, OEMs have some degree of leverage on pricing as demand continues to grow since margins could see a subdued decline if raw materials continue to remain fi rm.

Industry Outlook The industry is expected to grow at a CAGR of 13-15 percent in FY10-12 aided by strong GDP numbers reflecting high economic activity, favourable demographics and higher income levels. The major concerns, however, are steep raw material prices and currency volatility, which could cause serious concern to the whole value chain as margins and bottomline could shrink to a certain extent. However, commodity prices could see some slowdown from Q4FY11 with the demand-supply mismatch somewhat expected to ease out.

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SIAT 2011 19-21 January 2011

SIAT EXPO 2011 19-22 January 2011

SIAT 2011

Venue : ARAI Campus

e-SIAT EXPO 2011

Pune, INDIA

22nd Jan.2011 to 22nd Feb.2012

Or ganised by

The Automotive Research Association of India In association with

THE COUNTDOWN BEGINS FOR SIAT 2011...

Symposium on International Automotive Technology (SIAT) is a widely covered biennial international event organized by ARAI. SIAT serves as an important forum for sharing ideas and knowledge concerning promising areas of Automotive Engineering and Technology, wherein eminent experts and authors present Keynotes and Technical Papers in multiple sessions.

The coming edition of SIAT, i.e. SIAT 2011 – 12th in the series, is being organized by ARAI in association with SAEINDIA, NATRiP and SAE International at its campus in Pune (India) from 19 - 21 January 2011.

Theme of SIAT 2011 is “Sustainable Mobility – A Creative Challenge” is in continuation with our previous theme ECO-Mobility, emphasizing need for cleaner, greener and eco-friendly mobility. Keynotes and Technical Papers on various areas such as Alternate Fuels, Alternate Power Plants, Automotive Electronics, Automotive Testing & Evaluation Techniques, CAE, Durability, Emissions, Engines, Harmonization of Standards, Materials, NVH, Safety, Vehicle Dynamics, etc. will be presented during the Symposium. Symposium proceedings covering about 150 Technical Papers including Keynotes will be- published along with a Technical Reference Bulletin containing technical articles, case studies and product information.

An exposition, SIAT EXPO 2011, will also be organized concurrently at ARAI from 19-22 January 2011. Where a spectrum of world wide companies will showcase Automotive Products, Equipment, Services and Technology solutions in 160 stalls.

SIAT EXPO 2011 will be organizing “Technology Theater” as a special event on 22nd January 2011.

This Announcement invites delegate registrations. Timely response will avail early bird incentives.

PROGRAMME SCHEDULE SIAT 2011

SIAT-EXPO 2011

19 Jan. 2011

Wednesday

Inaugural Session & Technical Sessions

Inauguration & Exhibition

20 Jan. 2011

Thursday

Technical Sessions

Exhibition

21 Jan. 2011

Friday

Technical Sessions & Valedictory Session

Exhibition

22 Jan. 2011

Saturday

-

Technology Theater and Exhibition

DELEGATE FEES Upto 31st December 2010

1st to 19th January 2011

Indian First Author

` 6,500/-

` 7,500/-

Indian Delegate

` 13,000/-

` 15,000/-

Indian Group Delegates*

` 11,000/-

` 12,000/-

Indian SAE Member **

` 10,400/-

` 12,000/-

Foreign First Author

US$ 550

US$ 650

Foreign Delegate

US$ 750

US$ 850

Foreign Group Delegates *

US$ 650

US$ 750

Foreign SAE Member **

US$ 600

US$ 680

Category INDIAN DELEGATE (Figures in ` / Delegate)

FOREIGN DELEGATE (Figures in US$ / Delegate)

Service tax extra as applicable * (Discounted fees per delegate for more than 5 delegates from the same Oraganisation) ** Discounted fees for SAE member holding valid SAE membership at the time of Registration. (Membership details to be provided.) Delegate fee is payable by cash or through Demand Draft in favour of “The Automotive Research Association of India” (ARAI), payable at Pune, India.

Contact : Mr. A. V. Mannikar, : Convenor, SIAT2011 Email: siat2011@araiindia.com

Strategic Partner

For more information, visit our website : www.araiindia.com

Leading Automobile Dealers ALE 98

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n a fi rst of its kind initiative, Auto Monitor and the Federation of Automobile Dealers Associations (FADA) joined hands to identify top automobile dealers in India. The endeavour was to identify the top performers on sales, service and employee satisfaction index in addition to environment friendly and corporate social responsibility initiatives. CARE Ratings was the knowledge partner for this initiative.

Kataria Automobiles Location: Ahmedabad Owners/Directors: RK Kataria Ankur Jain Rohan Kataria

LEADING AUTOMOBILE DEALERS

1 - 31 January 2010

SALE

lades and commendation from Navin Jain Dealer Location Vehicle Category Maruti.

Vehicle category/brand: Kataria Automobile Ahmedabad Four-Wheeler Kataria Automobiles estabMaruti and TVS dealerships lished two service centres Number of employees: 1,200 at Ahmedabad Four-Wheeler Concept Motors (India) at Dariapur and Sarkhej in six sales and eight service Automotive Manufacturers Nagpur Four-Wheeler Ahmedabad in 1996-97 after Kataria group is headed Auto Center Korba Four-Wheeler establishing its fi rst Maruti

by Rajendra Kataria. Kataria dealership. A new showroom Automobiles bagged a Maruti Automotive Marketing Cochin Commercial Vehicle and service centre were also dealership in 1996 and since Innovative Motors Ahmedabad Two-Wheeler opened in Vapi, Gujarat. It grown to three showrooms subsequently opened dealerand service centres at strateDulichand Motors Kolkata Four-Wheeler ships in Ahmedabad, Surat gic locations in Ahmedabad.

Nanda Automobiles Gandhinagar Four-Wheeler and a True-value dealership It bagged TVS Motors dealBagga Link Service New Delhi Two-Wheeler in Vastrapur, Ahmedabad. ership for two-wheelers in Kataria is currently oper2003 and opened the outlet at Advaith Motors Bangalore Four-Wheeler ating two Maruti certified Maninagar, Ahmedabad and Source: CARE Ratings driving training school in has been consistently ranked Ahmedabad. Its Maruti show(April 2001 to March 2002), Dealers in Sales Satisfaction among the top dealers for Maruti rooms are located at Dariapur, Highest Esteem & Maruti 1000 Index, Category 1 in the Western and TVS. It bagged Platinum Maninagar, Vapi, Surat, Navsari sales in 1999 among other accoregion, Excellence in Car Sales Dealer title, Best Performing and Silvassa. Its service stations are located at Dariapur, Sarkhej-Gandhinagar highway, Maninagar, Surat, Vapi, Navsari and Silvassa.

It has been actively promoting community enrichment and customer friendly programmes around its dealerships and other locations in Ahmedabad.

It has sponsored gardens on the approach to its dealerships as well as local cricket tournaments and conducted a few blood donation camps. A new corporate office in Ahmedabad and three new workshops are among the initiatives that Kataria group is currently working on to make itself more visible in Ahmedabad. It has fi nance helpdesk at its dealerships from HDFC bank, Axis bank, ICICI bank and State Bank of India.

Concept Motors Location: Ahmedabad Owners / Directors : Pranav Nanda Vehicle category/brand: Hyundai Number of employees: 170 at three sales and five service outlets Concept Motors is one of the leading Hyundai dealers in the Western region having been in business for more than 11 years.

The dealership is promoted and managed by Pranav Nanda. It has two showrooms and four service centres in Ahmedabad and one showroom and an attached service centre in Surendra Nagar in Gujarat.

Concept Motors India was established in 1998 after bagging the dealership of Hyundai Motors India. Concept has sold more than 22,000 cars till date and continues to be the leading Hyundai dealer in the Western region. It has consistently won number of sales and service satisfaction index awards from Hyundai Motors.

Concept has been among the fi rst Hyundai dealers in the Western region to offer CNG fitment facility to its customers at its Ahmedabad service stations.

This has not only helped in popularising the CNG retrofitment concept through authorised channels but also helped customers in getting warranty backed CNG powered cars.

The Concept Hyundai showroom conforms to international standards set for Hyundai dealers with all infrastructural facilities, which are required in any modern dealerships. To cater to the service needs, a full-

Contd. on P103

We Are Brimming With Gratitude !!!

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1 - 31 January 2011

Contd. from P98 fledged workshop has been set up by Concept incorporating the latest equipments and processes in accordance with the norms laid down by Hyundai Motors India.

Concept a lso has t wo ‘Hyundai Advantage’ pre-owned car showroom selling Hyundai certified used cars. Warehouse and workshop of Concept are located at Shantipura, Sarkhej – Sanand Highway on a 13,000 sq metres area. The workshop is fitted with latest tools and equipments including engine analyser, computerised diagnostic tools and other equipments as per specifications provided by HMIL. It also offers insurance, fi nance and other facilities at its new and used car dealerships.

Automotive Manufacturers Location: Nagpur Owners/Directors: Aditya B Sanghvi Vehicle category/brand: Maruti Number of employees: 254 Automotive Manufacturers was incorporated in 1948 as a dealer for Leyland Motors, UK and began assembling Leyland vehicles at its Mumbai facility till 1955. It was appointed as sole dealer for Ashok Leyland for Maharashtra, Gujarat and Andhra Pradesh in the same year.

In subsequent yea rs, Automotive Manufacturers group through different entities also bagged dealerships for Mahindra & Mahindra, Bajaj Auto, Maruti Suzuki, Kobelco Construction Equ ipment s, Vol k swagen, Porsche and Audi across different cities in Mahrashtra, Gujarat and Andhra Pradesh. It has a new and a used car dealership of Maruti at Nagpur, Maharashtra.

Automotive Manufacturers has adopted customer relationship management programme with integrated DMS developed in-house which is regularly monitored by Customer Satisfaction Index/Customer Relationship Management cell, which monitors and addresses concerns and complaints on real time basis.

Automotive Manufacturers has been adjudged best dealer for Mahindra vehicles for six consecutive years from 2003-04 onwards.

The management of Automotive Manufacturers have also been invited by Ashok Leyland and Mahindra & Mahindra to their respective dealer advisory panel to advise the OEMs on various parameters concerning products, processes & systems, HR practices and service delivery.

Automotive Manufacturers group has also been active in Corporate Social Responsibility (CSR) initiatives. It key initiatives includes furthering the cause of education and healthcare through institutions like Bhartiya Vidya Bhavan, LV Prasad Eye Institute, LEPRA and Indo American Cancer Research Institute.

Automotive Manufacturers intends to tie-up with ITIs at suitable locations for training ITI students in dealership and service trade. It is also setting up its own academy to impart training on latest equipment and processes in order to absorb them across different dealerships within the group. It has established an Automotive Centre for Excellence which is also used by Audi India for imparting training to technicians of various dealerships

LEADING AUTOMOBILE DEALERS across the country.

Auto Center Location: Korba, Chattissgarh Owner/Director: Prabhuram Agarwal Pawan Agarwal Sanjay Agarwal Brand/vehicle category: M&M two, three and four-wheeler and CV dealer Number of employees: 200 at three sales and three service outlets Auto Center has been one of the most consistent performers for Mahindra & Mahindra over the last few years in all the four vehicle categories. Auto Center won the most promising dealer award in the four-wheeler category at the Automotive Dealership Excellence Awards’10.

Automotive Marketing Location: Cochin Owners/Directors: PK Ananthanarayanan Indira Ananthanarayanan

Design of evaluation forms — questionnaires for all award categories Developing the scientific quantitative model for assessment of the evaluation forms.

Eliminating all such nominations where the number of responses received under each parameter index was below seven.

Each question in respective category further had sub-options covering variousparameters on the survey.

In view of the criticality of certain questions as against the whole universe of questions, each question and the respective sub-options were assigned a question weight and an option weight.

Score for each parameter index per respondent was arrived by totalling the product of each question score (answer * option weight) and question weight.

For the respective dealer – average of the above score w.r.t to no. of respondents were considered.

To arrive on a consolidated score – respective Vehicle category/brand: Eicher trucks and buses Number of employees: 169 at seven sales and service stations Automotive Marketing (AMPL)

Auto Monitor

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parameter scores for each dealer were added.

Developing a five-point scale ranging from ‘Poor’ (1), ‘Average’ (2), ‘Good’ (3), ‘Very Good’ (4), ‘Excellent’ (5) in order to capture the feedback and satisfaction index of the respondents.

Nominees were short-listed based on the Top 5 consolidated scores.

In case of CSR and GI, which involved more subjectivity, CARE inspected the dealer nomination forms along with the various supporting documents substantiating such initiatives.

Parameter weights (on a scale of 100) were assigned to the five award parameters index i.e. PE, SE, EF, CSR and GI in order of their relative importance in the entire evaluation process.

The jury with its vast experience and immense wisdom provided a cutting edge in the final selection process of the short-listed nominees Throughout the entire process, CARE’s role did not extend to either validate the data compiled or check the authenticity/ accuracy of survey data.

joined hands with Eicher by becoming its sole parts distributor for Kerala. In 1999, AMPL acquired Eicher dealership and has been supporting sales and

service operations of Eicher Commercial Vehicles in Northern Kerala for more than a decade.

AMPL has grown by around

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Contd. from P103 35 percent over in terms of revenues over the last few years.

The performance of Automotive Marketing has enabled it to expand its footprint through additiona l dea lerships for Central Kerala as well as South Karnataka. It has also bagged dealerships for Telcon construction equipment for Kerala and South Karnataka. AMPL has consistently won best sales and overall performance award from Eicher Motors consistently over the last seven years and is on Eicher’s apex consultative committee since 2001.

Automotive Marketing in its communiqué to its principal (Eicher Motors) and customers has attributed its success to four fundamental principles: hiring best talent, scalable processes replicable across businesses and geographies, leveraging technology in all aspect of business management and living by the

LEADING AUTOMOBILE DEALERS

virtues of honesty, teamwork, mutual respect and safety.

AMPL is targeting to sell more than 1,000 units through its dealership network this fiscal which will be its best ever volume performance. AMPL is planning to establish two additional service centres to its existing seven and is aiming for a higher share of service revenues for Eicher branded vehicles.

Innovative Motors Location: Ahmedabad Owners/Directors: Pranav Shah Bhavesh Patel Atul Patel Vehicle category/brand: Honda two-wheelers Number of employees: 126 at three sales and four service centres Innovative is a leading two wheeler dealer in Ahmedabad and was established in 2003

by Pranav Shah, a qualified Chartered Accountant.

The dealership won the most

promising two-wheeler dealership award at the ADEA 2010 held early last year during the Auto Expo 10 in New Delhi. This ISO 14001 certified dealership has been a consistent performer for Honda Motorcycles & Scooters and has implemented Honda’s Green Dealership project.

It has also implemented some of current management concepts like focus area approach, employee empowerment, Kaizen, PDCL, AIDCA approach, scientific stock and ordering system.

Dulichand Motors Location: Kolkata Owners/Directors: Rajesh Sanei Vehicle category/brand: General Motors Dulichand Motors (DML) kicked off its ‘Chevrolet’ dealership around March 2006. The promoters of Dulichand Motors including Rajesh Sanei have been engaged in asset fi nancing business in Kolkata for more than

half a century. Jaishree Credit Corporation is the hire purchase and leasing company of Dulichand Group.

DML sold around 19 odd cars in the fi rst month but has since steadily build up on its reputation and regular new car introductions from GM India. The dealership now sells an average of close to 150 to 180 cars every month and sold 250 cars in December last year creating a record.

According to Rajesh Sanei, DML is planning to set up two to three additional sales and service extensions in suburban Kolkata to cater to wider set of customers. Even as the asset fi nancing business under Jaishree Credit is being pruned down to an average disbursement level of around `2 crore per month from earlier average disbursements of close to `8 to 10 crore every month, Sanei is evaluating opportunities to enter auto component manufacturing business.

1 - 31 January 2011

Rajesh Sanei is the eldest son of BL Sanei and manages the dealership business. He has been Ex-chairman of Motor Industry Association and a committee member of FADA. He is also an executive member of Merchant Chamber of Kolkata and also being appointed as the secretary of this chamber.

Nanda Automobiles Location: Gandhinagar Owners/Director: Anil Nanda Vehicle Category/Brand: Hero Honda and Maruti Suzuki Employees: 300 at three sales and three service centres Nanda Automobiles is one of the leading Maruti dealers in Gandhinagar and has ranked among the top performing dealers for Maruti in Gujarat. It is promoted by Anil Nanda, who also owns a Hero Honda dealership.

Bagga Link Service Location: New Delhi Owners/Directors: Prem Bagga Gaurav Bagga Vehicle category/brand: Bajaj Auto two wheelers Number of employees: 400 at four sales and six service centres Bagga Link Service was established in 1970 as a twowheeler dealer of Bajaj Auto two and three-wheeler. It is owned and managed by Federation of Automobile Dealers Associations (FADA) committee member, Prem Bagga. It currently deals in two vehicle brands: Bajaj Auto and Maruti Suzuki and also runs Bharat Petroleum filling stations under different entities. It is one of the few dealerships in the country to have almost quarter of its employees having put in around 25 years in service.

It was the all India number one dealer for Bajaj Auto in 2002 and has also received appreciation from Delhi Government and sales tax department and other bodies for its contribution to mobility and corporate social responsibility. Prem Bagga has participated at the National Automobile Dealers Associations’ (NADA) dealer training programme in New Orleans, United States in 2008.

Advaith Motors Location: Bangalore Owner/director: SVS Subramanya Gupta Anupama Gupta Vehicle/brand: Hyundai Motors Number of employees: 218 Advaith Motors is one of the three Hyundai Motors dealers in Bangalore. The company sells and services Hyundai cars through various sales & service outlets at Bangalore.

Gupta, a qualified Mechanical engineer hailing from the promoter family of The Vyasa Bank, began his innings in the automotive dealership business with Kinetic Motors dealership in the early nineties but later opted to become a Hyundai dealer in 1998. Advaith has received recognition from Hyundai has all India top dealer for four consecutive half yearly period starting January 2009. Advaith has also runs a commercial vehicles authorised service station (CVASS) for Mercedes Benz India in Bangalore since 2009.

It recently bagged an additional CVASS in Chennai. It started operations with sale of 223 vehicles in 1998 which grew to 1,398 in 1999. In 2009-10, Advaith sold around 10,279 cars. (Compiled by Abhishek Parekh)

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1 - 31 January 2011

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The contribution of natural gas vehicles to sustainable transport This International Energy Agency working paper evaluates the potential costs and benefits of using natural gas as a vehicle fuel for road transportation, as well as the policy related to its market development. The transport sector is currently responsible for 23 percent of energy related CO2 emissions, and transport associated CO2 emissions will more than double by 2050, according to the Energy Technology Perspectives 2010 (ETP 2010) Baseline Scenario (IEA, 2010a). Excerpts: Natural gas can be used in a compressed (CNG) or liquid (LNG) state in several modes of transport, including road transportation, off-road, rail, marine and aviation. Notwithstanding the potential for natural gas in other modes of transport, road transport dominates the total use of energy in world transport. This includes LDVs (passenger cars, light commercial vehicles), as well as medium duty vehicles (MDVs) such as vans or heavy duty vehicles (HDVs) such as buses and trucks. Potential benefits of using natural gas in transportation include cost reduction, greenhouse gas emissions savings, local air quality improvements, noise reduction, revenue increases from oil products and energy security enhancement.

Although the use of natural gas for the propulsion of vehicles is certainly not new, the past decade is the era in which global NGV development has demonstrated its strongest growth. Starting from a very low base of little more than one million vehicles, this has increased to a current estimate of just over 11 million vehicles.

Forty four percent of all passenger cars/LDVs are in Latin America. Almost two thirds of all MD/HD natural gas buses are in the Asia/Pacific region, while 53 percent of all trucks are in the Russian Federation and CIS, and Asia Pacific is leading with 78 percent of all other vehicles on natural gas (three-wheelers and tuk-tuks).

There are currently almost 17,000 fuelling stations for NGVs worldwide. Over half of these are located in just five countries. These five countries also represent the most remarkable growth in terms of number of fuelling stations in recent years, although countries such as Armenia, Bulgaria, Peru and Thailand should also be mentioned. Europe has almost 3,500 stations, of which around 900 are located in Germany and 800 in Italy.

According to IGU (2009), 600 to 1,000 vehicles per fuelling station is an economically sustainable ratio for public fuel stations. While the worldwide average of 672 is within these limits, there are few countries within this range. Some countries exceed the 1,000 vehicles/station ratio, which could indicate the need for more stations in order to avoid queues. The difference in between the retail price of an OEM LDV running on natural gas versus a similar model running on petrol or diesel is an important parameter in the market development of NGVs. Due to its chemical composition, i.e. the properties of methane, natural gas normally requires spark ignition and is

natural gas by replacing the diesel injectors by spark plugs.

Fuel Stations

therefore used in engines that are designed to run on gasoline. Using natural gas in an internal combustion engine means that some form of ignition is required. While the spark ignited gasoline engine seems to be the most obvious

option for conversion to natural gas, natural gas can also be used in diesel engines despite the compression ignition principle.

Besides the aforementioned dualfuel technology, a diesel engine can also be converted to run on

Although components for fuel stations are fairly standardised and available, the design of a station needs to be tailored to each specific situation. The investment required to build a fuel station depends on a number of site specific factors, including inlet capacity of the station, the size and type of the station, careful planning of the fuelling process of different types of vehicles, dedicated CNG station or CNG dispenser(s) added to existing multi fuel stations, required back up capacity/redundancy and connection to the natural gas

and electricity grid.

On average, a 25 percent reduction in CO2 eq emissions can be expected on a WTW basis when replacing gasoline by LDVs running on CNG. Comparisons to greenhouse gas emissions of diesel vehicles or comparisons between HDVs are less commonly made and appear to be more dependent on the type of vehicle.

Indian Scenario With many densely populated cities and ambitious plans to extend the transmissions and distribution network, India is regarded as a country with a big, possibly the biggest potential worldwide for the use of NGVs

Contd. on P134

110

I

Emerging Markets

Auto Monitor

n the next decade, the emerging markets of the BRIC countries (Brazil, Russia, India and China) are slated to play a dominant role in the automotive sector with China and India becoming the frontrunners.

Brazilian and Russian markets would consolidate further with other developing economies in the South American and African hemisphere and to a lesser extent Asian geographies, evolving as manufacturing hubs and potential markets for OE manufacturers based out of India. Proximity to customers, lower manufacturing and labour costs and favourable investment climes are expected to pedal this growth.

Citing the Goldman Sachs report on BRIC countries,

EMERGING MARKETS

1 - 31 January 2011

the Director General of the Society of Indian Automobile Manufacturers (SIAM), Vishnu Mathur forecasts that over the next fi fty years, these countries would become populist and with their income levels dramatically improving, would emerge as key markets of tomorrow.

Cor roborat i ng t his, Automotive Practice Leader, PwC India, Abdul Majeed said that Brazil and Russia would play an important role in the coming decade while Africa would be a big market for India, 201516 onwards. ‘Africa has a lot of potential but governance issues exist that would be a stumbling block in creating a big market,’ he added.

According to the Vision 2020

Nissan Micra assembled at the Ennore port for exports to Europe

document of the Automotive Component Manufacturers Association (ACMA) of India and Ernst and Young, the emerging markets would drive global demand for vehicles and auto components over the next decade.

‘The main markets for the component sector will continue to remain North America, Western Europe and other markets like Thailand, Japan, South Korea and South Africa,’ felt Executive Director, ACMA, Vinnie Mehta.

Elaborating on the export scenario, he added that the Indian industry had its hands full meeting the domestic demand situation. ‘Currently only those companies export for whom component exports are strategic for a global footprint,’ he continued.

In Triad (West Europe, USA and Japan) markets, pre-recession production levels are expected to return only by 2020 thus losing almost a decade of growth due to recession. In the meantime, light vehicle assemblies in India are expected to

pare up from 2.5 million units in 2009 to 10.9 million units in 2020 at a CAGR of around 14 percent.

In comparison, the potential of emerging markets for light vehicle assemblies would face a spike up from 7.4 million units to 14.7 million units during the same period, according to Vision 2020.

Component exports are likely to multiply seven fold driven by an increase in marketshare in North America and Western Europe by 2020.

From $3.8 billion in 2009 with North America contributing 28 percent, Western Europe 61 percent and other markets 11 percent, component exports would shore upto $26 to 29 billion by 2020 of which North America would account for 38 percent, Western Europe 47 percent and other markets 15 percent.

India is expected to witness strong growth in vehicle production across all segments till 2020 catapulting India to the top five league-of-nations in vehicle manufacturing, according to Vision 2020.

The Chairman of the Engineering Export Promotion Council, Aman Chadha felt that USA, Europe (Italy, Germany, Spain, UK, Greece), SA ARC countries of Sri Lanka, Nepal and Bangladesh and African countries of Algeria, South Africa, Egypt, Ghana and Nigeria were the biggest importers of Indian vehicles.

The Middle East (UAE and Qatar) and African countries were the fastest growing importers of the auto vehicles with major exports from India to these markets being the small petrol car of engine capacity of less than 1,500 cc. Turkey and other East European countries like Poland and Czech Republic had also become importers of Indian automotives.

The last decade had opened up new opportunities in the markets of SAARC, Latin America and Africa for the two-wheeler segment particularly in countries like Nigeria, Bangladesh, Sri Lanka, Uganda and Columbia.

‘At present our share in the Bangladesh market is estimated at around 80 percent and in Sri Lanka at around 70-75 percent in the two-wheeler segment,’ pointed out Head, Crisil Research, Manoj Mohta. ‘In countries like Columbia, Nigeria, Angola, Kenya and Uganda, we have gained reasonable market presence but they still offer strong growth potential in coming years,’ he added.

Just as India emerged as a favourite destination for some of the developed countries, some of the other emerging countries would be attractive for India during the coming decade, feel analysts. Here, some of the countries with potential growth are clubbed together for a better understanding:

Latin American Countries Latin American countries like Brazil, Argentina and Chile are emerging export markets for India. Indian automotive exports have been unable to make a dent in these markets, due to the large distances involved and inadequate trade agreements that has

Contd. on P112

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EMERGING MARKETS

Contd. from P110 resulted in a decrease in India‘s competitive advantage, pointed out Chadha.

Mexico, Argentina, Brazil have come up in the ladder while Chile is developing. Brazil is a populist economy heavily dependent on agricultural operations and natural resources. Its development is expected to rise further raising disposable incomes of people as well as the level of consumers in terms of tractors, as the economy presses on the gas.

According to industry captains, Mexico has been pegged as a good base for investment with rising prosperity levels and high level of industrial growth because of presence of American transnational companies. Component manufacturers of USA and Canada have established their hubs in the country to benefit from lower costs than those prevailing in North America. Automotive companies

1 - 31 January 2011

comprising Brazil, Argentina, Uruguay and Paraguay) and the Comprehensive Economic Cooperation Agreement with Korea and ASEAN, it is expected that these countries would drive the export demand for Indian auto components,’ elaborated Chadha.

Asian Countries

South Africa bound Ford Figo being flagged off from Chennai port: Ford has targeted exports of 5,000 units of Figo this year

in Mexico function at a lower cost and facilitate uptick in local people’s earnings.

Chile and Argentina are expected to be good markets going forward. Overall, for

companies who set up base in South America, close to North America, money is aplenty as demand shores up with a growing population.

‘Brazil, Argentina, Colombia

and Chile along with countries such as Korea and Singapore are fast developing into major export markets. With India’s Preferential Trade Agreement with Mercosur (a trading block in Latin America

India‘s exports to its East Asian neighbours continue to grow. Its improved relations with the East Asian countries have had a positive impact on its auto exports to these countries. India has managed to increase its share in automotive imports of countries such as Indonesia, Singapore and Thailand. India’s export of automobile exports to Indonesia increased from $ 0.72 million in 2005 to $ 46.86 million in 2009, according to EEPC data. There was a dip in exports in 2009 due to the global fi nancial crisis.

Iran has remained an untapped market so far, being out of the loop, said Mathur but possesses the riches and money to prove an important market for India. Besides, political relations between the two countries are conducive. Vietnam could also develop as a low cost manufacturing hub for Indian companies because of its cost advantages.

In Bangladesh, Pakistan and Japan, while the population is sizeable, local demand is limited but incentives to set up base and benefits accruing from connections in Asia are larger. Indonesia with its inherent strength has more potential than Malaysia.

Moreover, it has a huge population and a growing economy to boost local demand.

Russian Federation Indian automobiles are believed to be gaining acceptance in the Russian Federation.

Export of automobiles to Russia rose from $ 1.07 million in 2005 to $ 25.99 million in 2009, according to EEPC data.

According to an Ernst and Young Report 2010 of the automotive potential in Russia, several nationwide government initiatives could contribute to the support of the CV market and are likely to drive its growth in the future. Russia, a large market for passenger cars is set to grow not only as a large market but an exporter of domestic-brand vehicles.

‘The fundamentals in Russia are its large population, growth of the wealthier middle class, and the rapid growth of urban cities (such as Moscow and St. Petersburg), where consumers’ incomes enable them to buy a car.’ Russia is also taking the next step to redevelop its indigenous automotive industry, increasingly partnering with established global vehicle manufacturers, according to the E&Y Report.

Planned government budget allocations for 2009-2011 are believed to amount to RUB2.7 trillion, of which over 60 percent would come from state spending aimed at the development of Russia’s transportation system and development of the Far East and Trans-Baikal regions.

Most Russian suppliers are still highly dependent on domestic OEMs. At the same time, they are generally not yet competitive enough to meet the high requirements of global OEMs, which have started slowly ramping up vehicle production in Russia and are

Contd. on P114

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Contd. from P112 interested in localizing sourcing.

New OEMs in Russia would have to invest time and effort in developing their local supplier base, despite the high educational and technical level of the suppliers’ current workforce. Cooperation with established Russian suppliers would be the dominant avenue for the near-term development of the automotive component supply base, according to the E&Y report.

Africa ‘South Africa is a fast growing market and we believe that it’s just right for the ‘Indian made sedan’, elaborated Mathur.

Nigeria has good potential as well, though governance issues may require an offshore strategy to be followed. Zimbabwe is rich in natural resources and companies could look at setting up a manufacturing base in the country but common knowledge of the

EMERGING MARKETS

market and experience in Africa could be beneficial.

‘Africa has a lot of potential but governance issues are present that could be a stumbling block in creating a big market,’ confi rmed Majeed.

Central and Eastern Europe Small cars would continue to remain popular in the European markets particularly in East Europe, where Indian small car manufacturers would expand their presence. Majeed foresees heightened automotive activity in Turkey where a good potential for Indian manufacturers exists for setting up a manufacturing base as well as develop it as a hub for exports.

According to the Ernst and Young Report 2010 on the Central and Eastern Europe automotive market, there has been a strong demand for small, low-cost cars produced in Central and Eastern

Hyundai Santros and i10s assembled at the Chennai port

Europe accession states by OEMs, fuelled by increased demand for these cars in Western Europe and boosted by scrappage schemes, a governmental subsidy to encour-

age citizens to scrap their obsolete car and purchase a new one.

The largest of these producers, Czech Republic, defied the trend in the rest of Europe by increas-

1 - 31 January 2011

ing output. The boom in new car plant investments in the accession states seems to be over as cost differentials erode. There has been a concern that the CEE region would miss out on the current round of powertrain innovation in hybrid and electric vehicles as customers focus on mobility rather than the environment. There is limited regulatory push, OEMs with plants in the region carry out R&D elsewhere and there are few signs of emerging electric vehicle producers, unlike in almost all other regions. Parts of CEE would benefit from economic development via funding from the EU, and others would grow through general regional development.

Thailand Thailand does not have a very large population base so instead of a potential market it could be a good base for setting up a manufacturing set-up and developing it as an export base. ‘The government also offers incentives to component makers for developing the country as an R&D hub,’ said Majeed.

The Ernst and Young Report on the automotive market in Thailand confirmed that the country has the potential to allow automakers to consolidate their production capacities in the country and utilize it as their base for exporting to other countries in the Asia Pacific region.

Over the last two years, Thailand signed FTAs with key automotive markets in the Asia Pacific region, such as ASEAN, Australia, New Zealand, China and India. Currently, trade agreements with Japan and the United States are in discussion. Tata Motors is the latest automaker to show interest in setting up a pickup truck manufacturing plant in Thailand, from where it could potentially access the ASEAN and the Chinese markets through the Asean Free Trade Area (AFTA) and the Thai-Chinese Free Trade Agreement. Volkswagen and Fiat also appear poised to take operations to Thailand. The domestic market is facilitated by improving levels of personal income, attractive automotive loan schemes, decent roads in most of the country and nationwide dealer networks.

Although in global terms, the market is relatively small, as a member of ASEAN, Thailand benefits from the 5 percent tariff levied throughout AFTA, boosting the potential market available to local automotive producers. Thailand prides itself on being the world’s second largest production base for onetonne pickup trucks after the United States, and such locally assembled vehicles account for a massive 70 percent of the total vehicle sector. A low commodity tax of 3 percent is levied on pickup trucks, whereas the rate rises to more than 30 percent for cars. Japanese automakers have dominated this segment of the market even more than others, but in recent years, Thailand has started to witness new faces in the one-tonne truck segment like Ford, Chevrolet and Tata, said the Ernst and Young Report.

(Compiled by Shobha Mathur)

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Indian Components Industry: Riding The Tide Contd. from P93 direct component exports, auto component manufacturers also have indirect exports pertaining to supplies to OEMs for export models. The new product development strategy of several PV segment OEMs now appears to hinge on using India as an exports hub which offers strong growth potential for the industry over the long term.

The Indian auto components industry is currently facing formidable pricing challenge from China and South East Asian countries as they compete not only in the international markets but also on the domestic turf. At present, the cost competitiveness of Indian players is constrained on account of infrastructure inefficiencies, higher cost of power, upward pressure on wages and inflexible labour laws. The lowering or elimination of customs duty on several auto components under India-ASEAN and India-South Korea Free Trade Agreement (FTA) and forthcoming India-EU and India-Japan FTAs would further diminish the cost competitiveness of Indian suppliers.

Design Change Trends in Various Product Categories Product

Trends in Design Changes

Cylinder Block

Change of material and process from ferrous casting to aluminium die-casting

Intake Manifold

Change of material from aluminium casting to plastic

Exhaust Manifold

Change of material from ferrous casting to sheet metal

Engine Seals

Evolved designs being used to minimise friction between moving parts

Wiring Harness

Higher precision required in connectors used in wiring harnesses due to increasing proportion of electronics in automobiles

Lamps

Shift towards LED lighting technology and evolution of head lamp design from reflector-type to projector-type

Rear Suspension

Dead-Axle Type design replaced by Torsion-Beam design

Fuel Tanks

Change of material from sheet metal to plastic

Interior Plastics

Higher specification engineering plastic grades being increasingly used to meet evolving safety regulations

Sheet Metal Body Parts Conventional blanks giving way to tailor-welded blanks in certain applications Chassis Parts

Higher tensile strength sheet metal grades being used to achieve desired performance specifications with lower component weight

Source: ICRA Research India continues to be a net importer of auto components with its trade deficit for automotive components having expanded to USD 4.4 billion in 2009-10 from USD 210 million in 2004-05. In fact, imports of auto parts (such as tyres, batteries, wheels, chassis components,

engine valves etc) from China have ballooned at a brisk rate over the last several years with their increasing pervasiveness in the domestic replacement market as well as domestic OEMs in the CV and 2W segments.

Going forward, any potential shock to the Chinese automobile demand could result in surplus capacity, which in turn might fi nd its way into the Indian market and exert pressure on the growth of the Indian component industry. Further, the FTAs entered into by India with many countries have catalysed the import of auto components into India as many components have become more cost effective to import following reduction of import duty.

Even FTAs between other nations (where India is not a party) could have significant implications for the growth of the Indian components industry.

Scale expansion of several Indian auto component manufacturers contributed by overseas acquisitions; however, the credit profi les of some of them remain stressed on account of weak demand in developed markets Until the mid-to-late-1990s, the only interaction Indian companies had with global auto parts fi rms was in terms of seeking technology or equity partnerships, post which they also started focusing on exports. This was also when global auto makers started looking to low-cost countries for cheaper components.

Over the last decade, the Indian companies have graduated to the next level where they have made several mid-to-large sized acquisitions to expand their global footprint.

Taking an inorganic route for growth has allowed Indian companies to achieve global scale rapidly, make entry into new markets, acquire new customers and gain access to new tech nolog y.

Rest r uct u r i ng measures including closure of loss-making operating units, relocation of production facilities to low-cost locations, reducing manpower and putting in place a leaner management structure have helped rationalise cost structures. However, a full recovery in the fi nancial profi le would remain contingent on demand revival in the developed markets.

In ICRA’s view, M&A activity by Indian companies in the overseas auto components space would remain muted over the near term as players would tend to follow a cautious approach in the absence of encouraging signs

of demand revival in key developed markets.

Diversification Gains There has been a growing trend amongst component suppliers to diversify into new product categories, multiple automotive segments, and venture into nonautomotive businesses. Adding to the margin pressure woes are components from China and South- East Asia arriving in the Indian market place (OEMs as well as after-market) at much lower price tags.

And with more FTAs underway, the profit margins and business growth potential of auto component suppliers is expected to remain vulnerable to further pressure, catalysing the trend in diversification into non-automotive areas.

While the benefits of having a diversified operational profi le need not be overemphasised, the Indian auto components industry has demonstrated several exceptions in the past such that suppliers whose business has been concentrated on a few customers, geographies or automotive segments have maintained a rather healthy fi nancial profi le, while the performance of their more diversified peers has experienced stress. This peculiarity is likely to remain pertinent even going forward as most Indian ancillaries lack adequate scale to enjoy the full benefits of geographical or product diversity as compared to global majors in the segment.

Technological Adaptability Some of the newer vehicles launched in the Indian market have demonstrated radical changes in component designs aimed at providing greater comfort and safety features to customers and meeting changing emission norms. Some of these design changes have been disruptive especially with regard to usage of alternate materials and alternate manufacturing technology, which in certain cases has meant complete loss of business for incumbent suppliers. It is in this context that the ability of suppliers to remain in sync with the evolving vehicle specifications is likely play a crucial role in mitigating technological obsolescence risk and ensuring business continuity.

The Indian government on its part is also encouraging the Indian auto industry to increase its R&D efforts. One of the initiatives in this direction is the formation of the National

Automotive Testing and R&D I n f r a st r uc t u re P roje c t (NATRIP), set-up as part of the Automotive Mission Plan 2016, which is a partnership of the national government, several state governments and the Indian automotive industry. As part of this initiative, seven centres are proposed to be developed across the country, which would provide infrastructure to the auto and auto components industry for conducting R&D, testing and validation of components and vehicles.

Currently, capability gaps amongst Indian suppliers are particularly large in the areas of engine, powertrain, suspension and chassis components, where the pace of design and technology change has been relatively rapid.

Building such capabilities over the short term may be beyond the grasp of many Indian suppliers, considering that these require sustained investments towards R&D, besides the need to have access to skilled manpower. As an alternative, a large number of Indian suppliers have generally relied on technical support from foreign partners in various forms including transfer of project specific know-how, entering into technical agreements for a defi ned period, or establishing equity cum technical collaboration. ICRA expects this trend to continue, as a technical or equity collaboration has mutual benefits for both the Indian as well as the foreign partner.

Proven manufacturing capability of Indian suppliers and established supply chain remain enablers for the growth of the component industry Although Indian players may lack design know-how in certain product categories, their overall capability in manufacturing auto components, with consistent quality and reliability is well acknowledged by global OEMs and component manufacturers alike. This is evident from the trend of increased localisation levels in most new models. Indian companies have built strong in-house capabilities for design and manufacture of tools and dies, which earlier were often imported from Korea, Taiwan, Japan or China. The auto components industry has made a steady progress towards strengthening its manufacturing capabilities and setting up reliable production systems.

However, the improvements have not been uniform across the supply chain. At present, a wide gap exists between the progress made by tier-1 suppliers and those belonging to lower-tiers consequent to their prevalent lack of awareness and weaker fi nancial strength. ICRA believes that advancement of capabilities of the entire vendor value chain would be vital for the achievement of potential growth by the industry. Several auto industry participants are currently actively involved with their entire supply chain for enhancing their capabilities.

Although prospects of recovery of exports to developed markets remain uncertain as of now, ICRA believes the strong underlying domestic demand prevailing across automotive segments should enable the components industry to remain on an up tide over the medium term.

CEARS DIES & MOULDS PVT LTD

Panel Piercing Fixture

CROSS MBR PILLAR -D

Rear Cross Member -Top

(Turn –key)

Exterior Panels for SUV

Progressive Die Capability “CEARS” a “NASH Group” company specializes in die design and manufacturing large stamping dies, checking fixtures for Automotive industry and Sheet metal Part Manufacturers, Moulds for Plastic Industry & Aluminium Extrusion Dies.

CEARS DIES & MOULDS PVT. LTD. F-14, M.I.D.C. SATPUR, NASHIK – 422 007 India Email: co@nashrobotics.com; Cell: +919822035310, +919011093640 An ISO 9001 company

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Green Paintshop: A contribution to more...

Contd. from P84 matter is separated and the air can be recycled into the painting process through the supply air installation where a small part of fresh air is added. The fresh air part that is between five and at the most twenty percent, leads in a simple way to constant booth conditions and it does so widely independently of the exterior climate. The saturated limestone powder is automatically replaced by fresh powder depending on the degree of saturation, and can be used in other manufacturing processes in an untreated state. If one considers the energy balance of the entire paintshop, thirty percent of the total energy can be saved by the use of dry scrubbing, related to the painting booth the savings is sixty percent. The city with fi fty thousand inhabitants mentioned

at the beginning now shrinks to about thirty-four thousand energy consumers.

Also, the actual paint application offers numerous possibilities for more efficiency and resource saving, especially important if one considers the great portion of material costs in the total cost of vehicle painting. For instance,

with innovative colour change systems, the colour change losses can be reduced to an absolute minimum. Expressed in numbers that translates to one colour change about forty-five millilitres of paint are lost per atomiser.

That is already a relatively good default value. With the EcoLCC innovative colour change sys-

tem, this value can be reduced to ten millilitres. Here a large part of the paint material which otherwise must be purged and rejected is used for painting. A further reduction of the colour change loss can be achieved by the use of the EcoBell2 ICC. ICC stands for ‘integrated colour changer’ and it means that the colour changer is

built-in directly in the atomiser for a maximum of six high-runner colours. The paint loss here: as little as four millilitres.

EcoBell3 A further innovation in the field of application technology is the new EcoBell3. With this rotating atomiser, it is now possible for the fi rst time to design the exterior charge so compactly that the interior painting of vehicles is possible with it. The great advantage of this is an essential reduction of the complexity of the application system with waterborne paint.

Voltage block systems can now be renounced. The EcoBell3 offers even more, resulting in exterior and interior painting with the same atomizer, and in this way, new possibilities in the layout of painting installations. This gives easy, continuous painting without the interruption frequently necessary with voltage block systems for the ‘refi lling’ of the atomizer. In connection with the lean colour changer EcoLCC and with the new, very compact series nine paint dosing pump, the EcoBell3 offers such an extremely efficient and compact – but also simple – application system for all applications. Where can even larger energy volumes be saved in a paintshop? With the dryer technology and the corresponding exhaust cleaning. The compact design of the dryer with an asymmetrically designed stop zone, integrated air management and heat recovery in connection with the new, optimized TARCOM V burner technology by Dürr result in another fi fteen percent. The TARCOM V burner is designed so that existing installations can be retrofitted, and this fundamentally applies to all systems. It is not sufficient to develop powersaving and environmentally safe technology, it must also be operated correctly.

EcoEMOS With new painting installations, so-called greenfield projects, a conclusive concept saving energy and resources is certainly easier to realise.

Old installations in particular, however, also offer very great optimisation potentials when looking more closely. The investigations may be adjusted to the most different aspects. According to customer preference, attention is focused on energy and material efficiency, on capacity adaptations, on increase in availability, on optimum conversion of legal specifications or on quality improvement. This way, an existing painting installation can be made fit again with a manageable investment.

(The author works with Dürr Systems GmbH, BietigheimBissingen. He can be contacted at pavel.svejda@durr.com)

Tab - AM Jan11 pg 122

Tab - AM Jan11 pg 43

Tab - AM Jan11 pg 121

Tab - AM Jan11 pg 44

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Ruia Group looking for global Minda to diversify into play in automotive business wheels, filtrations Shobha Mathur Kolkata

R

uia Group appears to be making rapid strides towards its objective of becoming a global automotive supplier and a manufacturing conglomerate, if the recent acquisitions and the future investment plans are any indications.

Strategic acquisitions at regular intervals coupled with clinical execution of operational restructuring with an eye on bigger picture have been the hallmark of Ruia’s strategy. Chairman, Ruia Group, Pawan Kumar Ruia is evaluating the conglomerate’s presence in around 30 to 40 countries by 2014 from three overseas locations currently. He says the combined revenue target of his businesses for the next few years and the coming decade would be decided at the upcoming summit meeting in March-April.

But Ruia crosses his fi ngers on the inorganic growth strategy, reminiscing a Euro 600 million German acquisition that slipped out of his hands. He also lost out in the race to acquire the business of South Korea’s Ssangyong Motors late last year to Mahindra & Mahindra.

But Ruia has not jettisoned his plans and is ready to cash in on the next opportunity that comes his way. He is gunning for a few more global and local acquisitions over the next couple of years, including some more companies in the sealing system domain.

He recently acquired German business of Acument GmbH, a 230 million Euro fasteners company with 1,300 employees, from

Platinum Equity, an advisory fi rm, in an all asset deal adding to his portfolio of automotive businesses.

‘We have taken over four plants and a logistics centre in Germany,’ Ruia said in an exclusive chat with Auto Monitor in Kolkata. The acquisition would provide access to customers like TRW, Magna and ZF. The Acument plant process 70,000 tonnes of metal per annum, producing over 3.2 billion parts numbers for Volkswagen, Daimler, BMW, MAN, GM, Ford and TRW. Explaining the rationale for his European acquisitions especially in Germany, Ruia said: ‘If you want to be a major auto player globally, you have to be either in Germany or Japan.’

On acquisition criteria, Ruia explained that among the top considerations for him is the criticality and relevance of the product manufactured by the target company to the OEM and entry barriers in the acquired business or product segment. Another important criterias include effort required at restructuring the target entity’s business, its customer base and other external factors like regulation & law that could affect restructuring and grow th opportu-

nities. He noted that Acument possesses an exclusive ‘hex’ technology for making fasteners that tilted the scales in its favour.

‘We buy stressed companies. If the price is very high we pass off the deal,’ he elaborated.

Ideally, the targeted acquisition for the Ruia business should possess adequate Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA); so that the deal can be funded by the seller and the Group can

Contd. on P136

Nabeel A Khan New Delhi

N

K Minda Group is looking to enter alloy wheels and filtration systems businesses by forging separate joint ventures with Japan’s Kosei Aluminium and Toyo Roki.

It signed an equal partnership agreement with Japan’s Toyo Roki last month to manufacture filtration components including air and oil cleaners. ‘We are investing around `100 crore in a five acre facility near Bawal (National Capital Region) for the JV,’ said Chairman and Managing Director, Minda Industries, Nirmal Minda. He added that the construction work for the new plant in Bawal is likely to commence by the fi rst week of February this year.

The serial production of fi ltration systems is likely to commence by around January 2012.

The company will also produce plastic intake manifolds in the Bawal facility. The JV will supply around 200,000 units per annum to Maruti Suzuki and around 50,000 units to Honda Siel Cars.

In a concurrent development, the company entered into an equal joint venture with Kosei Aluminium, a leading alloy wheel maker based in Japan, for setting up two plants to make alloy wheels and gravity die-casting for the automobile industry. The total investment in the two facilities for wheels business is likely to be around `200 crore.

‘The production of alloy wheels and precision die-casting is expected to start by April next year in Oragadam, Chennai. The

second plant for Minda-Kosei JV will be coming up at Bawal in 2013,’ Minda elaborated. The partners will invest `100 crore in each facility.

The wheels JV is likely to produce one million units of wheels from each plant and supply it to all the major OEMs in India as well as export to markets where its JV partner has a presence in the initial stages.

The Kosei JV will supply the alloy-wheels to Nissan, Toyota, Ford, Honda and Maruti Suzuki from the Oragadam plant but once the Bawal plant is operational, it will cater to customers based in North India including Honda and Maruti Suzuki.

Some of the existing customers of Minda Industries and other Minda Group companies include Tata Motors, Toyota Kirloskar, Mahindra & Mahindra, Bajaj Auto, TVS, Hero Honda, Honda Siel, HSCIL, Volkswagen, GM, Fiat India, Renault Nissan and Yamaha.

N K Minda Group is a major manufacturer and Tier-I supplier of switches, electric mirrors, horns, lamps, blow molding components, electronics & sensors, Compressed Natural Gas-Liquefied Petroleum Gas kits, batteries & seats to the Original Equ ipment Ma nu fact u rers (OEMs).

According to estimates put forth by Automotive Component Ma nufacturers Association (ACMA), the component sector is likely to touch a business of around $110 billion by 2020. ‘We should be touching something around 40 percent growth in

Contd. on P133

124

Auto Monitor

1 - 31 January 2011

INTERVIEW

Implementation of GST is likely to address systemic inefficiencies In a recent interaction with Auto Monitor, President-Automotive & Farm Equipment Sector, Mahindra & Mahindra and President, Society of Indian Automobile Manufacturers (SIAM), Dr Pawan Goenka elaborates on challenges facing the automotive sector and his outlook for vehicle sales.

Abhishek Parekh What led SIAM to revise its vehicle sales projections in April last year and what is your outlook going forward?

We (SIAM) had anticipated around 12 to 13 percent growth in the fi rst quarter of this fi scal and it turned out that we had underestimated the growth as actual growth was much better.

We underestimated the growth in the second quarter as well.

We feel the long term growth projection of around 14 to 15 percent in vehicle sales over the next five years is a realistic projection. We had expected the growth to moderate from middle of 2010 but the volume growth in vehicle sales continues to show strong momentum. The growth in remaining months in this fiscal should be in the range of 15 to 18 percent as we saw in closing months last fiscal.

What was the reason for underestimation of vehicle sales growth?

It is not that we (SIAM) were being conservative in our projections or we miscalculated the

growth. I feel we may have overestimated the impact of some of the factors taken into account while anticipating the growth.

We were anticipating interest rate hike to be steeper than what it actually turned out to be during the last year. Stable interest rate scenario helped maintain the growth in vehicle sales. GDP growth was also better than what was expected around March last year. Thirdly, even though the commodity prices were as per our expectations most vehicle manufacturers did not increase their prices. Thus end customers were not affected by any price hike and EMI on vehicle loans also remained unaffected. Thus car prices and interest rate remaining lower or stable for most parts during the last year boosted consumer demand and aided in higher growth for automotive sector compared to what SIAM anticipated. We are very much in line with projections mentioned in the Automotive Mission Plan (AMP).

The only major issue is that passenger vehicle exports have

been more or less flat. The scrappage policy and other incentives in Europe have been withdrawn and hence even though vehicle exports to Europe have gone down, exports to other countries have gone up. Thus overall vehicle exports this fiscal have been more or less at the same level as the previous fiscal. The scenario on the exports front is a bit of a dampener as the significant addition to vehicle capacity in the country is meant for international markets. The move on the part of ASEAN countries and South Korea for a Free Trade Agreement (FTA) with the European Union may have a negative impact on exports of compact vehicles from India as we do not have any FTA with European Union.

What is current scenario on components supply?

The scenario continues to be grim on getting adequate supply of auto components. In our (Mahindra & Mahindra) next years’ planning, we are making provisions for sourcing castings related components and tyres from outside India, if suppliers are not able to meet our requirements. It is difficult for suppliers of these commodities to ramp up capacities in a significant manner in short time frame with major investments without adequate safeguards. But we (OEMs) cannot guarantee volumes

or business to suppliers. That continues to be function of demand and supply in a dynamic market.

What are the major challenges that you anticipate in meeting the long term growth projections?

One of the major concerns is suppliers being able to meet OEM demand. There was significant loss of production at many OEMs due to supplier related constraints across various parts and commodities.

Though we have been in touch with ACMA and the suppliers’ body has given assurance that component makers are putting in required investments and ramping up capacity, the scenario is not looking too good on this front. OEMs will be forced to look outside the country to

Contd. on P136

Much of the Indian rubber stocks are only on paper After the rubber prices touched an all-time high of `207 a kg recently, the growers have put the re-plantation on hold and are trying to make the most of the output from existing trees. This yield is not more than 50-60 percent of peak yields. Therefore, a temporary ban on the future trading and free import would normalise the situation, Director-General, Automotive Tyre Manufacturers’ Association, Rajiv Budhraja explained to Auto Monitor in a recent interaction.

age so the dealer will not like to hold it.

In your view, what is the correct method to calculate the stock?

The very methodology of calculating stock by rubber board is incorrect. In my opinion anything which is not saleable is not to be taken into stock. Rubber sheets which are in the smoke house and being used for drying purposes are also being taken as stock by the rubber board. Now stock is something to be seen as saleable. Another reason is that the number of growers is around one million. Estimating the stock holding with each grower is assuming maximum of 1,000 sampling, even little margin could bring lots of change.

Nabeel A Khan

The Rubber Board of India recently projected a high stock level, while the prices still continue to rise, primarily due to lack of supply. Do you sense any anomaly?

We see very, very direct and inherent confl ict between what the Rubber Board is saying and what the rubber market is.

There seems to be differences between the stock being projected by the Rubber Board and what is estimated by the industry people at the field level. Price today is at historic high levels, in fact, it is absolutely out of sync with what it should be.

This price trend has never happened before during the peak production season. So this is in itself an indication that if the prices are not at a position where it should be for whatever may be the reasons then there is an element of turnaround or a downward moment and in anticipation of that the grower or the dealer should not be holding the stock.

Is wrong estimation of rubber stock causing price rise?

I think one of the reasons is wrong estimation, when the Rubber Board is projecting the stock held by grower and dealers as very high. India’s natural rubber stock is way off the mark.

The fact that India’s closing stock is shown to be 38 percent of the country’s total production. At a time when natural rubber prices are ruling at an all time high and availability is a concern, such high levels of stock are simply unrealistic. Even in countries such as Thailand, Malaysia and Indonesia that are the largest producers of rubber, but do not rank amongst the largest consumers, the closing stock stands at a mere seven per cent, 14 per cent and three per cent of rubber production respectively. This shows that much of the Indian rubber stocks are only on paper.

If the rubber industry is utilising from the fresh arrivals then it is assumed that there is very limited stock because no grow-

Rajiv Budhraja, Director-General, ATMA

er or dealer would like to push new rubber and hold on to the old stock. The system followed in rubber stock is fi rst-in and fi rst-out. So it is assumed that

the fresh rubber is arriving in the market and the prices are at record high reason being the unusual rain in Kerala which can make rubber prone to dam-

What kind of impact do you see on the industry due to natural rubber price rise?

Tyres account for around 62 percent of total consumption of natural rubber and likely to go up. It will impact the whole automotive industry including aftermarket. From consumers’ perspective, we have said that a cost study should be done on the cost and production and cultivation and the price at which it is being sold to highlight the fact that there is a 200 percent margin, all in the name of growers, while the fact is that the end customer is bleeding. This should also be

Contd. on P136

126

Auto Monitor

1 - 31 January 2011

CORPORATE

Field Marshal to expand capacity at Rajkot facility Abhishek Parekh Mumbai

D

r Deepak Patel had little idea of the reception his initiative would receive from farmers and tractor dealers across the country. The man and his company PM Diesel, which sells engines, gensets and mini tractors under the brand name ‘Field Marshal’, designed and developed a 15 HP tractor around a year ago, sought to target the so called ‘bottom of the pyramid’ segment.

Not only is there a large market for ultra low HP tractor waiting to be tapped but Dr Patel’s initiative caught the attention of tractor market leader Mahindra &Mahindra, which wasted no time in approaching Dr Patel for a tie-up. M&M entered into exclusive licensing arrangement with Dr Patel for contract manufacturing of its brand ‘Mahindra Yuvraj’ hailed as the ‘Nano’ of

the tractor market potentially offering a viable entry level tractors to millions of farmers across the country.

Contrary to the current expectation and general outlook of most tractor manufacturers on the tractor market shifting to higher HP segment (above 30 HP), Director, PM Diesel, Dr Patel believes that customers or farmers prefer low HP tractors due to fragmented land holdings (fi ve acre or lesser) and growing mechanisation on account of shortage of farm labourers.

‘Buying a 25 to 30 HP tractors is beyond the reach of vast population of marginal farmers who are looking for a viable entry level tractor. The average land holding of around five acre and below in most parts of the country makes operating a 30 HP tractor unviable preposition. There is a huge demand for tractors below 20 HP range which is largely untapped,’ says Director, PM Diesel, Dr

Deepak Patel in an exclusive chat with Auto Monitor. But he is quick to clarify that demand for above 30 HP tractors is also growing but mainly on account of increasing applications of tractors beyond agriculture. What makes the preposition of manufacturing low HP tractor even more compelling are incentives and subsidies from central and state governments adding up to Rs45,000 per unit.

Field Marshal had been the largest engine and genset manufacturer in India in the late nineties and early part of the decade. It manufactured close to 160,000 engines in 2001-02.

But it could not keep pace with rapid technological changes and stringent regulation on emission compliance that swept the automotive and farm equipment sector in the later part of the decade. The company is now in the process of scripting a major turnaround with major upgradation

plans for its Rajkot facility. It is in the process of growing its dealership network for generator sets by around 50 percent from current 2,000 odd dealers.

The company notched a turnover of around Rs162 crore last year and is targeting a growth of around 30 percent year on year over the next couple of years. It is in the process of increasing its engine manufacturing capacity from 60,000 units to around 120,000 units and is creating additional capacity to manufacture around 36,000 tractors and engines in a separate unit within the existing premises at AJI Industrial Estate in Rajkot.

The company currently manufactures and sells a 9.5 HP mini tractors mainly in the Western region. More significantly, it is gearing up to supply around 100,000 tractors of 15 HP range to cater to M&M’s farm equipment sector’s requirements as a contract manufacturer from single

or multiple locations across the country over the next few years.

Though Patel is tightlipped about the investments earmarked for its expansion plans, any similar expansion in tractor and gensets manufacturing would require upwards of Rs120 crore. Field Marshal branded tractors of 18 and 20 HP range are currently undergoing field trials and ARAI approval process before they can be commercially marketed in India and neighbouring countries. The Rajkot based engine manufacturer currently offers low speed diesel engines ranging from five to 20 HP capacity and high speed diesel engines ranging from five to 24 HP capacity range for agriculture and automotive applications. It also supplies diesel generator sets in 2.5 KVA to 15 KVA range in the domestic in India and neighbouring countries. Its other product portfolio includes marine engines and fertilizers.

Tractor makers on Sonalika eyeing acquisition expansion drive in Europe; tie-ups Shambhavi Anand New Delhi

T

he increase in the sales of tractors has encouraged tractor manufacturers to increase production capacities.

Major tractor manufacturers are either planning or implementing expansion plans to significantly raise their production over the next 16 to 18 months.

Total tractors sales stood at 402,608 units in fiscal 2010, according to data available from Tractors Manufacturers Association (TMA).

Punjab-based International Tractors (ITL), which manufactures ‘Sonalika’ tractors, is planning to double the capacity of its Hoshiarpur plant. ‘The capacity of the present Hoshiarpur plant is around 150 units per day which brings it to around 55,000 annually. We have started expanding the capacity of the Hoshiarpur facility and are aiming to reach the capacity of around 400 tractors per day over the next year or so,’ said Chairman, International Tractors, LD Mittal.

‘We have a lot of land around the plant and so there is immense scope of expansion,’ he added. He further said that the company has recently set up a new tractor manufacturing facility in Bihar to cater to the market in the eastern part of the country as well as outside the country.

According to Mittal demand for tractors is increasing and to be able to meet the demand there is a need to ramp up the capacity.

‘The industry is growing at about 20 percent and we are growing at around 25 to 30 percent,’ he adds.

New Holland Fiat India, a part of Case New Holland (CNH) Global, which is a leading agricultural, and construction equipment manufacturer is also gearing up to meet the rising demands. ‘Tractor industry is growing fast. Last year we saw a peak in the demand and this year we are expecting to see another high. According to CAGR, we have grown by 30 percent and the industry by 10 percent. We are planning to double the capacity of our current plant,’ said Managing Director, New Holland Fiat India, Stefano Pampalone.

The company has facility spread over 60 acre in Greater Noida. The current capacity of the plant is 30,000 to 40,000 units per annum and the company has plans to increase it to 60,000 units with an investment of around `250 crore.

Mahindra and Mahindra (M&M) has also witnessed a growth of 31.7 percent in its farm equipment business. In the period of April to September FY 11, M&M sold 219,931 units of tractors. M&M is setting up a new

Contd. on P133

LD Mittal, Chairman, International Tractors

Shambhavi Anand New Delhi

I

nternational Tractors is evaluating opportunities for a tie-up or agreement with tractor manufacturers in Italy and other European countries for cobranding arrangements for local and international markets.

‘Some Italian tractor manufacturers have shown interest in making their tractors at our Hoshiarpur facility. But as the talks are in early stages, we are not in a position to divulge more information,’ said Chairman, International Tractors, LD Mittal.

He added that Sonalika would prefer to co-brand the tractors produced in collaboration with the Italian manufacturers.

Sonalika Group is also eyeing acquisition in Europe for expanding its international footprint and benefit from its low cost manufacturing base in India. ‘We are evaluating an acquisition in Europe,’ said Mittal but declined from giving any further detail.

International Tractors is looking to export around 6,000 tractors this fi scal. Last fi scal,

the company’s exports stood at around 2500 units. The Group is planning to produce 120 HP tractors, for exports, especially to the American market. ‘Since the farms in the western countries are much larger than those in India and the other developing nations, they need tractors with higher power. We are already exporting 90 HP tractors to the US,’ he said. The company plans to export to Bangladesh from its tractor unit in Patna in Bihar.

The group is keen on expanding to new markets outside the country. South America and Africa are among the main target markets. ‘We are already present in Africa and we are planning to expand our presence there. We are setting up assembly units in various African countries including Nigeria,’ said Mittal.

Recently, Sonalika group has also launched some new products in its farm equipment segment. ‘The demand for other farm equipment is growing as fast as the demand for tractors.

We had so many orders for rotter weighters, thrashers that we were forced had to decline

as we could not meet them. We have started making new products like gensets and threshers,’ Mittal said. The company also plans to establish assembly units to manufacture farm equipment in some of the promising markets.

Sonlika Group has also signed an agreement with General Motors (GM) to manufacture BS IV compliant engines for their multi-purpose vehicle (MUV) –Tavera, at its Hoshiarpur plant.

‘The engines made for Tavera are under testing and the company has already sent us the designs.

We are now manufacturing the engines in our Hoshiarpur plant,’ he added expressing his happiness on the renewal of GM deal.

The company claims that the new engine manufactured for the MUV will be powered by a sub 2 litre CRDi engine and will comply with the BS IV emission norms.

Earlier GM had to take the vehicle off the roads in some cities as its engines were not meeting the required norms. These new engines will also help Sonalika Group with their passenger vehicle, Rhino.

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128

Auto Monitor

1 - 31 January 2011

INTERVIEW

There is unlikely to be a single dominant fuel technology for commercial vehicles In an exclusive chat with Auto Monitor, Chief Executive Officer & Managing Director- Cummins Research & Technology India (CRTI) & Chief Technical Officer, Cummins India Operations, Craig A Barnes speaks about the cutting edge development work happening at CRTI and his views on technology roadmap for commercial vehicle sector in India and globally.

Abhishek Parekh What is your view on fuel technology that will play a dominant role for commercial vehicle segment in the coming years?

There will be niches around the world as far as fuel technology is concerned. The fuel technology is largely driven by location related factors as well as natural advantages that a particular market may enjoy. It could be ethanol in Brazil or Compressed Natural Gas (CNG) in India or some other combination in some other market. We (suppliers) have to adapt engines to suit the local demand and fuel infrastructure in markets that we operate in. For instance, we (Cummins) manufacture and sell engines in the United States and other markets which allow for up to 20 percent of fuel blending, provided it meets the emission standards in the given market. As engine manufacturer we need to make our engines flexible to support different fuels and blends depending on the market where we operate. We have a generator set which can run on vegetable oil as well as diesel as power availability is a major problem in several parts of India. Thus we may not have a single solution for all markets globally.

The challenge comes when one has to manufacture engines

with optimum performance that meets the customers’ or market expectation and comply with the existing and future emission norms. At times we also offer same technology in different models for greater choice to meet the market demand. We offer a choice of 6.7 litre and 5.9 litre engine for Tata Motors’ Prima truck whereas in the United States manufacturers have moved to 6.7 litre completely and we have phased out the 5.9 litre engine as the volumes would not justify the cost and the effort required to make in emission complaint engine of the capacity in the United States.

Hence we have to select and make available suitable technology for meeting the emission norms using mechanical systems to meet our cost targets and other parameters.

Is Cummins working on any new engine platform for Indian or any other market globally?

Our approach is to gather and evaluate the building blocks for any engine platform for a market depending on customer requirements. We necessarily push the existing technology and architecture to its limits and at the same time evaluate on options that would be required for the

future. We are always evaluating on developing engine based on existing architecture with variations in technology or changes in design. Its’ an ongoing process and I cannot say whether we are working on new engine platform for Indian market or any other market for that matter.

Has Cummins achieved its objective of setting up the Research & Development centre in India?

The R&D centre in Pune has made significant contribution to our effort at developing next generation engines and technologies for the future. In the late nineties when Cummins was in the process of developing high HP engines, the R&D centre in Pune provided major contribution and has evolved as a centre of excellence for Cummins.

CRTI has been in operation to support global developmental as well as local development efforts at Cummins since 2003.

The R&D centre has already grown to around 250 skilled people working on design, structural analysis and fluid mechanics for Cummins’ global requirements.

The R&D centre was set up to pool in the knowledge base built up in India and there was not much pressure on cost at the time it was set-up. The centre does extensive R&D work on various businesses including engines, components, power generation business locally and globally. We benchmarked processes and standards based on predefi ned requirements and some of the other parameters we had set internally.

Craig Barnes, CEO & MD- CRTI & Chief Technical Officer, Cummins India Operations

As a Design Functional Excellence leader, I had a stake in the work undertaken and training imparted to get the desired output. I took over running of the R&D centre in 2008 when I came back to India as Chief Technical Officer at Cummins India. The centre has shaped up well to perform analysis led design which implies more upfront testing with analytical tools and less of engine testing in real conditions as it is more faster and allows for more variations and changes.

The processes, tools and bench-

marking are the same across all technical centres of Cummins globally and our Indian centre occupies prominent place in global scheme of things.

What are the major trends in engine design and powertrain technologies for commercial vehicle segment and how is Cummins placed to take up the opportunity?

We are working on various different systems and technologies and we try to locate the right

Contd. on P133

Cooper Corporation working on one tonne CV, evaluating acquisitions Abhishek Parekh Satara

C

ooper Corporation is working on ‘small’ commercial vehicle in the one to one and a half tonne capacity for goods and passenger carrier applications. The company is currently in the process of testing the vehicle and getting required approvals from various authorities including ARAI and is likely to launch the vehicle around early to middle 2012.

The company is also evaluating options for raising funds for expansion and foray in vehicle manufacturing business by diluting promoter stake or through other means. The company is also evaluating a few vehicle platforms, which can be bought over from the entities manufacturing them currently or evaluating acquisitions of the said entities but is yet to take a fi nal decision on the matter, said a person close to the development. The company notched up a turnover of around `234 crore last fiscal.

The company recently inaugurated its engine manufacturing facility set up with an investment of around `300 crore in Satara with capacity to make around

Zal Cooper, Director, Cooper Corp (third from left above) and Farrokh Cooper (3rd from right below), CMD, Cooper Corp at the plant inauguration ceremony

48,000 two-cylinder engines per annum and around 24,000 four to six cylinder engines per annum.

The 26 HP engine is likely to be targeted at commercial vehicle manufacturer for one to one and half tonne capacity.

‘In India, we have had a chicken and egg situation as vehicle manufacturers decided to manufacture their own engines as there were no reliable suppliers for the engine,’ said Director, Cooper Corporation, Zal Sam Cooper. The company is also in the process of enhancing its dealership network for selling gensets to meet the growing demand for power. There is a major market

for light and compact gensets in many areas within the country with space availability is a major issue in most cities in towns coupled with erratic power supply.

The total diesel generator market in India is pegged around $1.37 billion (`5,500 crore) with bulk of volumes in the 15-75 kVA capacity segment, according to industry estimates. Cummins India, Kirloskar Oil Engines and Mahindra Powerol are the top three genset suppliers in India.

Cooper further elaborated that the company evaluated various options including joint venture and technical tie-up but could not get the desired engine

in terms of performance parameters, age of the engine and other acceptable level of performance.

Rather the company enrolled UK based engine design fi rm Ricardo to help design the engine to suit the desired parameters and worked on the engine to make it the best in class.

‘Today the Indian customer is expecting the latest in terms of technology and performance and we cannot offer an old generation engine. Apart from offering, fuel efficiency and emission compliance, the engine is robust enough to offer consistent performance from the engine for up to 7,000 hours,’ says Cooper while launching the new generation engine manufactured at the company’s Satara facility. This performance specification roughly translates into around 250,000 kms of useful life of the engine from OEMs and customers’ perspective, he adds. ‘We are now looking to market the gensets and we are also in touch with various automotive OEMs for supplying engines, which is one of the most modern engines meeting all current emission norms and other accepted performance parameters,’ added Cooper.

The company manufactures

around 70 percent of its engine by weight in-house and this can not only help ensure quality consistency but also insulate the company from supplier related problems associated with production ramp up. ‘It is better for suppliers and even vehicle manufacturers to have a more manageable demand- supply scenario rather than a zig-zag pattern that is visible for few months now.

Such fluctuation does not help either vehicle manufacturers or suppliers like us,’ said Chairman and Managing Director, Cooper Corporation, Farrokh Cooper.

The company will roll out ‘Cooper Eco Pack’ from this plant and in due course plans to launch light commercial vehicles. The company employs around 2,000 skilled and unskilled workers comprising engineers, quality control personnel, workmen and administrative staff recruited from the leading educational and technical institutions. Engine manufacturing is a forward integration for Cooper. It also manufactures engine components including crank shafts, cylinder liners, cylinder heads, crank case, valve seat inserts, flywheel housing and flywheel, adaptors for vehicle and engine manufacturers.

130

Auto Monitor

ANALYSIS

Cumulative passenger car sales grew by 32.4 percent in 2010-11 to touch 1,266,770 units as compared with 956,752 units in the previous fiscal. Utility Vehicle (UV) sales grew by 20.26 percent in 2010-11 to touch 206,223 units compared with 171,474 units notched up in the previous fiscal. Multi Purpose Vehicle (MPV) sales increased by 50.75 percent in 2010-11 to touch 138,359 units compared with 91,782 units in the previous fiscal.

Nissan registered highest growth rate in the passenger vehicle segment with 4274.8 percent to 5,556 units as compared with 127 units in the same period in the previous fiscal.

Passenger Cars

Cumulative Light Commercial Vehicle (LCV) sales grew by 25.8 percent in 2010-11 to touch 217,031 units as compared with 172,518 units sold in the same period in the previous fiscal.

Medium & Heavy Commercial Vehicle (M&HCV) sales grew by 47.36 percent in 2010-11 to touch 194,958 units compared with 132,300 units notched up in the previous fiscal. Three-wheeler sales increased by 18.41 percent in 2010-11 to touch 339,551 units as compared with 286,758 units in the previous fiscal.

Hindustan Motors notched up the highest growth rate in the LCV with 94.16 percent gain to touch 266 units this fiscal as compared with 137 units in the previous fiscal. Asia Motor Works notched up highest gain in M&HCV segment with 99.46 percent growth to touch 4,035 units as compared to 2,023 units in the corresponding part of the previous fiscal.

OEMs

2009-10

2010-11

BMW

1,984

3,716

Fiat

17,079

14,956

Ford

18,784

62,415

GM

37,279

57,009

HM

5,528

5,284

-4.41%

HM

HSCI

39,400

39,180

-0.56%

HMIL

200,613

238,333

3,581

5,824

491,061

621,271

MSIL Merc

2,078

87.30%

LCVs (PC+GC) OEMs

-12.43% 232.28%

ALL

52.93%

62.64%

68.38%

5,556

Skoda

10,879

12,006

10.36%

163,398

37.42%

Tata

118,903

TKM

6,306

7,012

Audi

1,248

2,248

VW

1,902

25,063

956,752

1,266,770

Total

447

6,156

10,350

137

266

M&M

48,584

63,718

MNAL

-

7,242

Piaggio

7,276

6,045

Swaraj

2,199

2,645

104,311

121,582

Tata 4274.80%

127

2010-11 -0.89% 68.13%

Cumulative Scooter/Scooterette sales grew from 891,329 units registered in 2009-10 to touch 1,328,741 units in 201011, a growth of around 49.07 percent.

Motorcycles/StepThrough sales increased from 4,747,112 units in 2009-10 to touch 5,900,922 units in 2010-11, a growth of around 24.31 percent.

Moped/Electric Scooter sales increased from 372,342 units registered in 2009-10 to 454,840 units in 2010-11, a growth of around 22.16 percent.

Mahindra & Mahindra 2W notched up the highest growth rate in scooters segment this fiscal with more than 247.66 percent increase in volumes from 29,778 units in 2009-10 to 103,527 units in 2010-11. It was followed by Suzuki Motorcycles with 82.94 percent growth to touch 142,080 units as compared with 77,663 units in the previous fiscal.

HMSI notched up highest growth rate in motorcycles segment with 66.34 percent increase from 267,122 units in 2009-10 to 444,322 units this fiscal. It was closely followed

by Bajaj Auto with a growth of 50.3 percent this fiscal from 1,085,785 units to touch 1,631,881 units. TVS Motors registered the highest growth rate in mopeds/electric scooters segment with around 22.98 percent increase in volumes from 369,860 units in 2008-09 to 454,840 units in 2009-10.

94.16%

31.15% 0.00% -16.92%

Scooter/Scooterettee

26.52%

Nissan

2009-10 451

Force

18.80%

3,499

Two-Wheelers

Commercial Vehicles

Passenger Vehicles

MR

1 - 31 January 2011

VECV - Eicher

3,404

Total

172,518

20.28%

39.13% 25.80%

217,031

11.20%

M&HCVs (PC+GC)

80.13%

OEMs

2009-10

2010-11

ALL

28,112

49,765

AMW

2,023

4,035

2009-10

2010-11

BAL

3,356

27

HHML

127,701

204,118

HMSI

452,641

588,744

M&M 2W

29,778

103,527

SMIL

77,663

142,080

TVS

200,190

290,245

44.98%

Total

891,329

1,328,741

49.07%

-99.20%

16.56%

4,736

OEMs

1217.72% 77.02%

32.40%

59.84% 30.07% 247.66%

82.94%

99.46% -86.00%

JCBL

100

14

Daimler*

-

68

0.00%

MNAL

-

177

0.00%

48.26%

Merc Benz

138

83

3,331

4,526

UV OEMs BMW Force

2009-10 361 3,483

2010-11 315

-12.74%

5,164

Ford

1,403

2,017

43.76%

Swaraj

GM

9,822

13,165

34.04%

Tata

HM

1,034

1,777

HSCI

156

371

HMIL

13

113

71.86% 137.82% 769.23%

ICML

770

480

M&M

97,282

107,892

MSIL

2,576

4,428

Merc

66

328

Nissan

107

331

85,845 11,792

18,090

VECV - Volvo

577

627

Volvo Buses

382

331

Total

132,300

194,958

OEMs

-39.86%

2009-10

2010-11

BAL

1,085,785

1,631,881

HHML

2,844,552

3,151,607

HMSI

267,122

444,322

IYM

157,101

179,837

-

4,370

50.30% 10.79%

35.88%

117,242

VECV - Eicher

Motorcycles/StepThrough

66.34%

36.57% 53.41%

M&M 2W

14.47% -3.62%

8.67% RE

34,377

33,132

SMIL

31,942

29,011

TVS

326,233

426,762

-9.18%

-13.35%

-37.66%

47.36%

30.82%

10.91%

Total

24.31%

4,747,112 5,900,922

71.89% 396.97%

3 Wheelers (PC+GC)

209.35%

Tata

21,786

27,347

25.53%

TKM

32,615

42,495

30.29%

Total

171,474

206,223

20.26%

Mopeds/Electric

OEMs

2009-10

2010-11

Atul

7,071

11,603

Bajaj

117,300

134,558

OEMs 64.09%

1,132

137

M&M

29,000

38,543

Piaggio

118,169

130,371

Scooters

6,992

8,355

TVS

7,094

15,984

286,758

339,551

2010-11 22.98%

TVS

369,860

454,840

2,482

NA

372,342

454,840

14.71% Electrotherm*

-87.90% Force

2009-10

0.00% 22.16%

MPV OEMs Force

2009-10 0

2010-11 102

0.00% 73.08%

Maruti Tata

60,771

105,182

31,011

33,075

91,782

138,359

50.75%

Total

10.33% 19.49% 125.32%

Total

6.66%

Total

32.91%

18.41%

* Data not available since August 2008 onwards

1 - 31 January 2011

CORPORATE

Minda Group ...

Contd. from P120 next fiscal (FY 12). We are planning to add new product line and diversify into non-auto segments including solar lighting and solar systems,’ added NK Minda. It is evaluating two more JVs with a European and a Japanese company in March to produce few more auto components.

Explaining the reason for getting into the JVs with foreign companies, rather than going independently, Minda said, ‘we mainly sign joint ventures for getting better technological support and good customers in the international market as their customer base is already established.’ ‘India will be a low cost manufacturing base for the JV partner and eventually the company is also looking at a good share of the new product lines to be exported,’ Minda added. The group is a global player

There is unlikely...

Contd. from P128 technology for the right market globally in the most cost effective and competitive manner.

For instance in the United States most manufacturers opted for EGR and then to particulate fi lters and to selective catalytic convertors as the emission norms tightened further. Commercial vehicle manufacturers in some of the European countries, by comparison, opted to go directly to selective catalytic convertors to manage cost and meet emission requirements. For any technology to be adopted in any market fuel economy, initial cost and maintenance as well as fuel availability plays a big role in preference towards a particular technology. It is challenging for us given the fact that many of our customers also manufacture their own engines. As the market evolves the customers begin to indicate their preference for vehicle with a particular engine.

We have built a recognised brand in the US for instance and customers opt for a Volvo truck with a Cummins engine, for instance. Hence we are in good position to grow in developing markets like India and need to build our brand through innovation and cost effective technology solutions to win customer confidence. The right technology thus is largely dependent on what the local market requires and how we as a supplier can gear up to meet the requirement. Moreover, we supply turbochargers, aftertreatment products, fuel systems and fi ltration products to our customers, in addition to engines, making it easier to not only adapt products for various requirements but also supply these products through our group entities to other engine manufacturers as well as OEMs. What is your outlook on the commercial vehicle sector in India?

The outlook is very optimistic for the CV sector in India. The infrastructure build up and other developmental activities taking place across the country is likely to spur demand for more powerful (high HP) trucks.

in automotive sector with manufacturing facilities in Indonesia, Vietnam as well as offices in Japan, Europe and China. It has 21 manufacturing plants in India and has JVs/technical agreements with world renowned manufactures such as Tokai Rika- Japan, Soft Italia- Italy, Kyoraku –Indonesia and EMER - Italy.

Viewing on the strong competition faced by China in the Indian and international markets, Minda said ‘as far as the alloy-wheels are concerned the aluminum price are cheaper by 15 percent in China due to basic incentive given to the manufacturers there. But the transport cost is high and the cheaper raw material cost in China will increase in due course of time.

Prices in China may come at par with the international prices,’ Minda said.

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133

Tractor manufacturers planning...

Contd. from P126 facility to manufacture around 100,000 tractors in South India to cater to the requirements of ‘Mahindra’ and ‘Swaraj’ branded tractors. The new facility is expected to be set-up with an investment upwards of `120 crore. The company’s tractor export business has also seen a tremendous growth.

The number of units exported in the period of April to September FY 11 increased by more than 2,000 units as compared to the corresponding period in the previous financial year.

Apart from the growth in the Indian market the growth of the tractor industry outside the country is also responsible for the soaring demands of the same.

Most of the manufacturers have witnessed a significant rise in their exports in the last year.

Sonalika is planning to export

around 6,000 units in the next year. Last year they exported around 2,500 units. ‘Our exports have increased more than double,’ said the MD. New Holland Fiat is also targeting to increase their exports. The company is aiming to export their tractors made in their Greater Noida plant to more than 60 countries.

The company is also planning to explore new markets.

According to Mittal, ‘Export has vast potential. I think the Indian industry will not be able to supply or meet the demand generated by the foreign market.’

Citing the reason for this growth he adds, ‘agriculture in some foreign countries is in the starting stage. The growth of the farming sector in other nations has created opportunities for us in those markets. We are already present in the African market.

We are also planning to export to new markets in Europe, Sri Lanka, Bangladesh and the United States.’

Mittal said, ‘the demand for other farm equipment is also growing as fast as the demand for tractors. We had so many orders for rotter weighters, thrashers etc that we had to decline some of them. In fact we are planning to expand the facility for farm equipment manufacturing also at the Hoshiarpur facility. We are planning to export farm equipment to Zambia and Tanzania.’

New Holland Fiat is also planning to focus more on farm mechanization and give complete solutions for agriculture and farm activities. Stefano said, ‘for the last three to four years farm mechanization has received much more interest than anything else.’

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Impact of external market changes...

Contd. from P46

3.0 Brazil South Africa

Mexico Argentina

1.5

Czech republic

MHCV per 1000 people (2009)

3.0 LCV per 1000 people (2009)

driving LCV sale in these nations is the extent of retail penetration.

Retail sector growth is expected to drive demand for LCVs, and in the long term reach the global penetration levels in the LCV segment. The other driver of growth would be the shift towards hub and spoke model of transportation and the increasing presence of 3PLs in the transportation sector. The implementation of Goods and Services Tax (GST) is also expected to have a positive impact on the segment.

However, the 5-7.5 T subsegment within LCV has been witnessing a de-growth in recent years. These vehicles, used for specific niche applications, mostly captive, are expected to have limited use and might grow at levels lower than the overall market growth.

Similar to the shift witnessed in LCVs, there is a significant shift that can be seen in the MCV segment. This comprises vehicles from the 7.5 T – 16 T range.

Improved road infrastructure and better economics of operations have led to shift in demand away from the traditional 6-wheeler (16T) towards HCVs, primarily the

Brazil

Czech republic

1.5 Argentina

South Africa

Mexico

India

India 0.0

0.0 0

15000

30000

0

Nominal GDP per head (PPP USD) (2009)

25 T vehicles and also towards the lower segments of MCV i.e. 7.5 T – 12T. The 12-16T segment, which was the largest sub-segment as recent as 2005 is steadily losing ground to 25 T vehicles. While this segment would continue to fi nd usage in short hauls, improved road infrastructure would be a key driver for the de-growth of the segment.

India has plans for road development in the next ten years.

Around 25,000 km of national highways is anticipated to be constructed in the next four years and as part of the National Highways Development Programme. In

15000

30000

Nominal GDP per head (PPP USD) (2009)

addition, 18,000 km of expressways are targeted to be added by 2022 alongside 350,000 km of rural roads by 2015. This is in addition to the ongoing projects to widen single lane roads to twolane (14,800 km) and four lane roads to six lane roads (6,500 km).

While development in road infrastructure is a key enabler for sale of heavy trucks and trailers, demand would primarily be driven by the growth prospects of construction, mining and industry sector (comprising segments like automobiles, steel, chemicals, petroleum). Tractor trailers

could have the strongest growth amongst sub-segments and has the potential to be the biggest beneficiary of developments in road sector followed by high-end rigid vehicles.

Market participants are focussing on the changing trends in customer requirements - lifecycle costs and serviceability.

The fragmented nature of truck ownership with an estimated 80 percent of truck owners having less than 10 trucks, and 1-2 percent of truck owners having a large fleet of 200-1000 trucks, had led to initial purchase price being the most important con-

sideration for purchase. However, with availability of products at varied price points and different value propositions, there is a trend towards lifecycle cost being the key purchase criterion.

This trend would be driven by large fleet owners, who operate in the 3PL business. Given this trend, manufacturers may need to focus on lifecycle costs, serviceability and performance over traditional consideration of initial price.It is interesting to note that majority of the players are developing products tailored to needs of Indian customers and are not deploying older generation trucks from other markets.

Homologation forms an important part of the overall entry strategy into the Indian market.

Made ‘for India’ and ‘in India’ seems to be the mantra that most players are adopting for entry/ sustenance into the growing Indian market.

(The author P.S. Easwaran is a Director with Deloitte Touche Tohmatsu India Private Limited (Deloitte) & R Sriranjini, Manager, Strategy and Operations practice. The views expressed herein are his personal views and not that of Deloitte)

The contribution of natural gas vehicles...

Contd. from P107 and indeed the country has seen very significant growth in recent years. India also faces a number of challenging reforms and developments that will shape the evolution of the Indian gas market as well as the NGV market.

There are two main drivers for NGV programmes in India: improving local air quality and alleviating the pressure on the budgets of government and oil marketing companies for effectively subsidising imported fuels, despite the subsidies in place on natural gas. The share of diesel vehicles in new car sales has already increased from 4 percent in 2000 to 30 percent in 2010 and it is expected to increase further to 50 percent by 2012. This leads to an increasing share of diesel vehicles that are certified according to emission standards equivalent to European standards about a decade ago, which has significant detrimental effects on local air quality in the many densely populated cities of India. Particularly emissions of PM and NOx cause severe health problems, as is confi rmed by several studies. Diesel fuel was found to have contributed up to 61 percent of total PM 2.5 ambient concentration in a 2004 study supported by the World Bank while another study found diesel engines to contribute 40 percent to NOx emissions from vehicles.

Reserves, production and domestic demand India has 1 074 bcm of proved and indicated gas reserves as of April 2009 and production has been almost flat around 30 bcm since 2002.

Production is estimated to have reached 46 bcm18 in 2009, though, which would partly reduce the gap between supply and potential demand. The expected doubling of production between 2008 and 2011 and increased regasifcation capacity are likely to set gas demand in India on a path to significant growth. IEA forecasts

Five cities in India with most developed NGV market City

No of Stations

CNG Volumes CNG price (mcm/y) (USD/kg)

Number of Vehicles

Cars/ taxis (%)

Autos (%)

LCVs (%)

Buses (%)

Delhi

171

507

0.42

290,000

61

32

2

4

Mumbai

136

402

0.49

191,000

29

68

1

1

Pune

7

0.7

0.62

600

8

79

0

14

Vadodara

3

11

0.53

3,900

16

80

0

4

Surat

25

55

0.61

80,000

46

51

0

1

Source: CSE, 2010 India as one of the fastest growing gas markets worldwide with an annual increase of 5.4 percent over 2007-2030, reaching 132 bcm by 2030.

The downside of India’s focus on three-wheelers and small LCVs is that the limited fuel up-take of these vehicles does not create large CNG demand, which may make it difficult to justify investments in city gas distribution. Providing about 500 mcm/y of CNG requires an investment of roughly USD 55 to USD 65 million. It is clear that CNG in itself creates insufficient demand, synergy with other sectors is essential. Synergy can be created by connecting industry, decentralised power and residential sectors to new grids as well. If no synergy can be created while there is significant demand for CNG in transportation then mother/daughter systems can be a more cost-effective option than a dedicated pipeline to supply regions with CNG. CNG programmes in cities such as Delhi and Mumbai benefit in the past from lower gas prices under the APM, but since the decision in May 2010, to raise prices under the APM, CNG prices have gone up considerably from USD 0.49 to USD 0.61/kg. Considering the increasingly important role that India is attributing to LNG in its natural gas supply, the effect of LNG prices on CNG prices is also an important factor for NGV programmes in the future. Since NGVs are aimed at reducing local air pollution, it is important that

heavily polluting vehicles are replaced with NGVs that perform substantially better, not only in the short term but over the whole lifetime of the vehicle. While Euro II CNG buses, equipped with a three way catalytic convertor, emit more CO and HC than Euro II diesels do, they perform much better on PM and NOx. India has both retrofitted vehicles and OEM vehicles. Retrofitted vehicles are likely to be less fuel efficient than OEM vehicles (CSE, 2010). In particular, three-wheelers and cars will tend to emit more CO2 than counterparts running on gasoline or diesel. India produces a large share of OEM vehicles domestically. The vehicle industry has had to respond quickly to the fuel substitution strategy and did so for regulated types of vehicles (buses, threewheelers, taxis and LCVs) more pro actively than it did for cars, since there was no legal obligation to drive stable growth of this segment. As a result, the car market in India is dominated by aftermarket conversion as the car industry has only very recently began to show interest in producing OEM cars on CNG due to the price differential creating a market pull effect.

Buses are an important part of the NGVs fleet in India, mainly as a result of government policy in conjunction with Supreme Court rulings. The CNG bus market is being served predominantly by two major Indian producers, while other players are entering the market as well. Innovation is

important in this segment and producers fi nd it hard to match growing demand. The policy of many Indian cities to increase public bus fleets is likely to drive a further increase in the number of CNG buses, which puts pressure on the industry to develop technologies to simultaneously address PM, NOx and ozone emissions as well as fuel efficiency. Technology has to be optimised in terms of engine concept (stoichiometric or leanburn) and aftertreatment of exhaust gases and choices of technology have to reflect the long lifetime of vehicles. The bus industry in India is taking its fi rst steps towards some future technologies as well, including CNG/ hybrid buses and H-CNG. A CNGplug-in-hybrid bus prototype has been developed, which is claimed to reduce fuel consumption by 20 percent-30 percent compared to a conventional ICE. As for H-CNG, after five years of R&D a fi rst H-CNG dispensing station has been commissioned at Dwarka in January 2010. Three-wheelers and cars can run on H-CNG but need to go undergo engine calibration to achieve the targeted emission. The 80/20 CNG/H2 blend has been identified by the stakeholders involved as the optimal ratio in terms of costs, range and emissions.

Outlook India is clearly progressing in the implementation of CNG in the LDV and LCV segment as well as

transit buses. The intercity buses and trucks have so far remained an unexploited potential though, while there are indications that these contribute heavily to pollution. This heavy-duty segment could be a very interesting market for CNG/LNG as well.

One single fleet owner tends to own many vehicles which means that few stakeholders are involved.

For this strategy to succeed it is important that OEM of HDVs are involved and produce dedicated NGVs, where on board fuel storage is optimised for transportation of cargo and engine performance.

Another uncertainty at this point is the potential for India to replace natural gas by biogas or bio-SNG. While the replacement of old diesel vehicles by more modern CNG technology will likely bring some benefits in greenhouse-gas reduction, a long-term contribution to reducing CO2 emissions from India’s transportation sector would benefit greatly from either the direct or indirect (through certificates) use of biogas in vehicles.

Although in the past decade the worldwide market for use of natural gas in vehicles has developed stronger than ever before, this technology remains a niche market as the current share of natural gas in road transportation is still very limited in all but a few countries.

Michiel Nijboer is Gas Analyst, Energy Diversification Division at International Energy Agency (The views expressed in this working paper are those of the author and do not necessarily reflect the views or policy of the International Energy Agency (IEA) Secretariat or of its individual member countries. This paper is a work in progress, designed to elicit comments and further debate; thus, comments are welcome, directed to the author at naturalgasinfo@iea.org)

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Implementation... The current duty structure ...

Contd. from P120 source necessary components to meet production targets from either China or South Korea or other countries, if the situation does not improve.

Let me also add that this fi scal it would have been difficult for any OEM or its supplier to anticipate the demand and most of the suppliers were able to meet their commitments but we can only stick to our production schedules if all suppliers meet their commitments. Our estimate is that things should settle down by around fi rst or second quarter of next fi scal.

I would sum up by saying that we (OEMs) are staring at three major challenges: GST implementation, power availability and availability of skilled manpower. The third challenge is a very major one as we have been facing shortage of quality manpower for a while now.

Establishment of NSDC could have a major impact on this front.

What is required to be done on the regulatory front for domestic sales and exports to gather and sustain pace?

The biggest reform that is required is implementation of Goods and Services Tax (GST) which is likely to address lot of issues concerned with embedded taxes. These embedded taxes at central and state level add upto eight to ten percent in overall cost for an

automobile manufacturer in India vis a vis a manufacturer in China. GST will take this inefficiency out of the system and help in making Indian automobile manufacturer more competitive.

Some form of export incentives would always help manufacturers in gaining access to certain markets.

As an industry association, we have been in constant dialogue with the government on various issues and the relevant government bodies are constantly reviewing the situation.

It would be more appropriate if the government takes a more focused approach towards automotive exports as what we have seen thus far in terms of export incentives or schemes is more generic in nature to manufacturing or engineering sector.

Among the issues we are hoping to discuss with government includes schemes or set of incentives for specific target countries or markets and simplification of processes.

Additionally our experience with FTAs has been satisfying and as we go for FTAs with more countries, we have to remove systemic inefficiencies in our domestic market. Unless we do not ensure this point and go in for more FTAs, we would be staring at systemic imbalances. The focus on ‘sustainable mobility’ has to continue with manufacturing incentives, infrastructure creation and customer acceptance.

Contd. from P120 taken into notice. The government is not taking any action.

Tyre manufacturers are also at the receiving end.

Who is gaining from this price rise?

This kind of price seems to be in favour of the growers but not in the long run. Because no one is doing re-planting as they are getting high price as of now, eventually dissuading them from replanting. The farmers are confused on whether they should replant or take the advantage of high prices. The farmers continue with 50-60 percent yield from the existing plant and don’t chop off the plants for new plantations.

As the plant grows old the yield starts declining.

Do you think future trading is adding to the price rise?

An overheated futures market has been affecting the natural rubber price in the recent past.

We have highlighted this trend to the government and asked for a temporary ban on the future trading of natural rubber.

Unfortunately we have not got a positive response from the government on this. Surprisingly even the Rubber Board of India, the agency which is looking after the interest of the growers has also asked for the lowering of the intraday limit on the trading of rubber but not being accepted.

Even if trading is not banned, intraday trading limit should at

least be reduced to four percent.

What do you think the government should do to help in such situation?

We have made innumerable submissions to the government and also gone to the court and courts have also asked and directed the government to look at the key issues objectively. Recently, the government has allowed the industry to import 40,000 tonnes at a concessional import duty of 7.5 percent by March 31.

Thereafter, the duty has been capped at 20 percent or `20 per kg. This is a welcome change but it should have been done at least a year ahead, it’s a step taken too late. We are already into a situation of rubber shortage and the government should allow more imports because you have so much of capacity within the country which is ready to process rubber into value added products whether it is tyre or non tyre sector. The government should also correct the inverted duty structure. Today rubber is coming to India at an import duty of 20 percent while tyre is imported at 8.6 percent custom duty. So if we don’t correct the inverted anomaly in the custom duty then eventually the people will rather than have end product coming to the country. Another option is that the duty on the rubber import needs to be just below the duty on the end product (tyre) that is 8.6 percent to 5 percent that is what level on global turf.

If the import is increased, do you think it will affect the domestic grower?

There will be no impact on the domestic growers if the import is increased as the government has already promised that whatever is produced here will be consumed.

And there are enough capacities for consumption of natural rubber in the country.

Can natural rubber be replaced by synthetic rubber?

Synthetic rubber cannot replace natural rubber as there are certain technical limitations.

There are times when commercially it will be more viable to switch to synthetic rubber but there are limitations because both have their specific properties. Briefly, natural rubber has the property of lesser heat generation so commercial vehicle tyres will be preferably made of natural rubber as it gets heated due to loading factor and long distance travel. So the natural rubber tyre will remain important and will continue to play a dominant role.

Do you see price going down anytime sooner?

It is very unlikely that the prices will go down steeply. It is very fragile situation (the rise in the price of natural rubber) and should not to be taken for granted that it is going to continue to be at those levels. The current price is unsustainable and unrealistic.

Ruia Group looking for global play...

Contd. from P123 reserve its cash for the acquisition. The significance of EBITDA caught up in the mid-1980s as leveraged buyout investors examined distressed companies that needed fi nancial restructuring. They used EBITDA to quickly calculate whether these companies could pay back the interest on these fi nanced deals or could service its debt in the near term after restructuring.

‘Once we acquire a company, we put in our management skills and turn it around so that it can withstand the impact of the atmosphere, even if it is negative. For six months to a year, we monitor the company till it can function independently and does not require much control from us. In Acument’s, most of this job was completed over the last 6 to 8 months and most of the formalities related to production facilities have been re-worked by us,’ added Ruia.

In Acument’s case, its facilities are located in four cities within Germany and the best way to manage its operations was to locate some of its processes at one place and other processes at another. ‘It is not possible to merge together all operations at one plant. Structuring will take place in the second and third phases so that all the plants are individually profitable.’

Ruia heads a conglomerate of seven companies; Jessop and Company, Dunlop India, Falcon Tyres, Monotona Tyres, automotive sealing systems manufacturers - UK based Schlegel Automotive Europe and Germany’s Draftex Automotive

Grefrath and Gumasol Rubber ver in FY’10 at `844.35 crore and customers’ proximity and other Tec GmbH, which manufactures highest profit after tax at `51.63 factors. The location and capacsolid tyres and industrial rubber crore. ity for the fasteners plant would products.

Another fi ve lakh tyres per be streamlined by mid-2011 and Once the acquisition process month capacity is being added at is expected to go on stream by of Acument GmbH is complete by the Mysore plant that would be early 2012 but no future plant mid January, it will join the portoperational by mid-2011. Another would generate less than 50 milfolio of businesses under the Ruia five lakh tyres per month capacity lion Euro turnover per annum in Group umbrella. has been planned at a greenfield India.

Ruia began his career Ruia is also evaluating a as a practicing Chartered new facility for two, three Accountant and diversified and four-wheeler radials After any acquisition, we into the industrial ceramic with a production capaciput in our management skills ware and chemicals busity of over 600 to 700 tonnes and turn it around so that it ness. From 2003 onwards, per day. The plant would be Ruia has been expanding set up within three to four can withstand the impact of his empire in heavy engiyears with an investment the atmosphere neering, automotive tyres, of around `2,500 crore. A industrial rubber products, solid tyres manufacturing automotive sealing systems facility is also under conand now fasteners with plans to facility at Haridwar, Uttarakhand sideration by Gumasol in India. expand the component bouquet that would give Falcon more ‘Gumasol used to source tyres and perhaps even enter vehicle tubeless tyres per month. from Sri Lanka. We are trying to manufacturing business.

The company is investing either buy or set up our own facilaround `300 crore in expanding ity for it. Ultimately, we see the capacity at the Mysore plant and growth here over the next three Dunlop Acquisition another `750 crore is earmarked to four years, though the majority Dunlop’s facilities at Chennai for new facility at Uttarakhand of our business comes from overand Sahagunj in West Bengal that through promoter’s equity and seas,’ said Ruia. manufacture truck, bus, OTR debt. Falcon Tyres spews out Investment details for all the and LCV tyres were re-opened around `100 crore cash surplus plants are still being worked out, after Ruia took over its reins in per year that has taken care of but the Group is likely to invest 2005. After extensive restructurmuch of the expansion expenses, between `5,000 to `10,000 crore ing carried out over the last few remarked Ruia. The Uttarakhand across all its Indian operations. years, Ruia is targeting a turnover facility would also manufacture Ruia clarified that going forof `600 crore for the brand in the two and three-wheeler tyres. ward the Group’s focus would current fiscal. be on both tyres and compoThe other acquisition, Mysorenents. Tyres have a replacement based Falcon Tyres that produces Inward Investment market and the business is not bias- ply tyres and butyl tubes for One of the overseas acquidependent on OEMs for growth. two and three-wheelers, was not sition from the Ruia stable, Queried on whether it did not a sick unit when it was acquired Schlegel is setting up a plant make more sense to base the around 2005. It has a technical in India for sealing products in Group’s headquarters globally, tie-up with Japan’s Sumitomo Pune for catering to OEMs based when over 50 percent of the comRubber Industries. in Germany and Japan. Another pany’s revenues were accruing With a current capacity of group company Acument is also from foreign acquisitions, with around one million tyres per planning to set-up a facility for the figure expected to rise furmonth, the Falcon plant at fasteners in either Gurgaon, ther after future acquisitions, Mysore posted its highest turnoPune or Chennai depending on

Ruia said:‘Apple and Airtel made virtual offices but they feel more happy and safe in India than in having an overseas office. If the business is more in Germany then the headquarters can be in Germany, but you have to fi nally see where is the growth is ultimately. Acquisitions in Germany have been more because they have the technology and acceptance by OEMs. If the company comes to India, we will set up a plant here for it to get access to OEMs in India, so growth will happen here.’

Talking about the opportunities in the country for the sector, Ruia remarked that huge infrastructure growth in the country over the next decade would spearhead growth in the automotive sector. Hence, to avail that opportunity it was either lucrative to acquire an automobile company or become a part supplier to an OEM. So what is Pawan Ruia’s secret of success?

‘Maybe sectoral profit’ is the answer. ‘The most important aspect is costing. We control costs to make a company profitable and calculate product wise, segment wise, price wise contributions from it on a daily basis and control them mercilessly. If that product or that segment does not give us contributions, we stop it and then look at costing.’

Summing up he says, ‘You need two things: you must have the hunger for success and the desperation to achieve it. It’s as if your life won’t be complete until you succeed. In the end it’s all about challenges, opportunities and value creation.’

138

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National auto round-up Mahindra Thar launched at `4.47 lakh Mahindra & Mahindra recently launched its much-awaited off-roader, Thar, which is an evolved version of the Mahindra CJ340, the MM 540, the Classic.

The off-roader is available in two versions DI and CRDe. The CRDe 4x4, a BSIV compliant variant is priced at `5.99 lakh (ex-showroom, Delhi), while the

DI 4X2 variant is priced at `4.47 lakh (ex-showroom, Jaipur). The Thar’s engine of 77 kw and offers 105bhp. The CRDe variant will be manufactured at Kandivali facility while the DI variant will be produced at company’s Kandivali facility. The vehicle has improved suspensions and features and better ground clearance to take on tough roads than the models from which it has evolved. It is available with two types of engines - 2.5-litre common rail direct injection (CRDi) petrol engine and 2.5-litre common rail diesel engine (CRDe). M&M will also launch a new pick-up truck in above 1.2 tonne capacity in the fi rst half of 2011.

Tata Steel, Nippon sign auto steel JV Tata Steel recently inked a JV with Japan’s Nippon Steel Corporation (NSC) for setting up a `2,300 crore specialty steelmaking line at Jamshedpur to cater to the domestic auto industry. The JV would set up India’s first continuous annealing and processing line to produce 600,000 tonnes automotive coldrolled steel a year. It would source steel from Tata Steel’s Jamshedpur plant. Tata Steel will hold 51 per cent in the JV and the rest will be held by NSC. The plant is expected to come on stream in 2013.

Apollo Tyres enters Bangladesh market Apollo Tyres recently signed an agreement with the local d i s t r ibutor R a h i m a f r o oz

Group, for distribution of tyres in Bangladesh. Rahimafrooz Group is a prominent manufacturer and distributor of automotive and industrial batteries in Bangladesh. Replacement market size in Bangladesh is estimated at around 45,000 and 30,000 heavy and light commercial tyres per month respectively.

Apollo Tyres exports to more than 70 countries across the world.

Harley-Davidson introduces new models for India Harley-Dav idson recently introduced two new SuperLow and Iron 883 models in India.

The SuperLow and Iron 883 will be the fi rst two models to roll out of the CKD (completely knocked down) assembly facility in Bawal

and will be introduced at `5.5 lakh and `6.5 lakh (ex-showroom Delhi) respectively. The bikes have been designed with low seat height, broad powerband from its 883cc V-twin engine. HarleyDavidson India currently offers 12 models in its 2010 line-up in India, available through authorised dealerships in New Delhi, Mumbai, Bangalore, Chandigarh and Hyderabad.

Eberspaecher Suetrak India to set up headquarters in Bangalore Eberspaecher Suetrak Bus Climate Control Systems India is re-locating its headquarters from Gurgaon to Bangalore.

The new facility in Bangalore will house both administration and the production department to provide a local source of supply to meet the demand for bus climate control systems in the rapidly expanding Indian market, the company said in a statement. The company will be producing roof AC and split AC offering Indian customers a full range of bus air-conditioning systems. In June 2010, the Eberspaecher Group acquired the Indian bus AC business from Carrier, US. The company’s 50 employees in India will be supported by Eberspaecher Suetrak’s German head offi ce in Renningen. Eberspaecher ranks amongst the leading system developers and suppliers of exhaust technology, vehicle heating and bus air conditioning systems and also operates vehicle electronics and automotive bus systems for electronic networking in the vehicles.

Essar, Kobe sign MoU to make automotive steel Essar Steel recently signed a memorandum of understanding with Japan’s Kobe Steel for collaboration in the areas of technology for manufacturing advanced high-strength (AHSS) grade steel sheets for automotive applications. Essar Steel and Kobe Steel will explore the possibility to set up a JV to design, construct, own and operate a continuous annealing line (CAL) and a continuous galvanizing line. Currently, the two companies have an agreement for sharing of advanced technology and resources to manufacture high grade iron and steel products to help address the growing demand for high-grade steel products in India.

Magneti Marelli, Accenture sign five-year deal Magneti Marelli signed a five year agreement with Accenture to get in-vehicle infotainment (IVI), telematics and embedded software initiatives. Magneti Marelli designs and manufactures high-tech systems and components for the automotive sector. Accenture will help develop and manage the company’s digital entertainment and communication solutions and services designed to improve the onboard driving experience of a wide range of vehicles, including cars, light commercial vehicles and trucks. As a part of the agreement, Accenture will utilise its global network of Automotive Solution Centres to provide automotive industry knowledge and experience.

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GLOBAL WATCH

Bank to buy Chrysler Financial for $6.3 billion A Canadian bank agreed to buy Chrysler Financial in a $6.3 billion deal that gives the auto lender a second lease on life and saves hundreds of jobs in Detroit. Torontobased TD Bank Group is buying the Farmington Hills-based lender from Cerberus Capital Management LP, the New York private equity fi rm that acquired Chrysler Financial and Chrysler LLC from Germany’s Daimler AG in 2007.

The company will drop the Chrysler Financial brand early next year once the deal is approved by the US and Canadian regulators. Chrysler Financial CEO Tom Gilman said the company had been on track to liquidate next year, or at least end up a much smaller standalone company, a move ‘that would have required significant manpower reduc-

Toronto-Dominion Bank and its subsidiaries, about a possible acquisition. TD’s US subsidiary is known as TD Bank.

tions.’ The sale is a sign that the auto fi nance market is improving and more banks want to get into the business.

Chrysler Financial’s work force is down to 1,850 employees, about half of them in Michigan.

The lender slashed more than 50 percent of its staff — about 2,000 positions — during the last two years. The company also has offices in Dallas and Jacksonville.

Chrysler Financial’s loan portfolio fell to under $10 billion in the last year, from $50 billion, and it stopped underwriting new loans. For most of that time, the company was simply winding down its portfolio. As the markets improved, Chrysler Financial resumed some modest lending last summer. In September last year, the company began serious talks with TD Bank Group, which includes

Bankruptcy Proceedings TD officials said they expected some overlap with the deal but did not outline any additional cost cuts for Chrysler Financial.

Gilman said if the company is successful, he expects that there’s going to be an opportunity for adding jobs.

Chrysler Financial was spun off as a separate company after former parent Chrysler fi led for bankruptcy in 2009. Under the terms of the deal, Chrysler’s lending business was turned over to Ally Financial, the former Detroit-based GMAC. Chrysler Financial must stop using the Ally name by June. TD Bank essentially is paying the fair-

market value, $5.9 billion, for Chrysler’s $7.5 billion loan portfolio, plus an additional $400 million premium. About 70 percent of Chrysler Financial’s loan portfolio is for people with prime credit scores - buyers with the best credit — and the company plans to focus on those buyers.

‘Joining forces with TD will benefit both our customers and our dealer network,’ Gilman said. ‘We’ve never lost the ability to think like car people. We think like dealers and we know how to advise them and how to help them make money. We want to develop relationships’ with other automakers’ dealers.

Under the terms of the agreement, TD’s U.S. arm, TD Bank, will acquire Chrysler Financial in the United States and TD will acquire Chrysler Financial in Canada. The business will be

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one of the top 5 bank-owned auto lenders in North America.

‘This transaction represents a unique opportunity to purchase a great organic growth platform at an attractive price,’ said Group President and Chief Executive Officer, TD Bank, Ed Clark.

‘Chrysler Financial is a well-run business with the capacity for significantly higher returns over the next several years.’

Stake Sale The sale also ends Cerberus Capital Management’s plan to create a massive auto lending arm. Cerberus acquired Chrysler, the automaker, in a $7.4 billion deal in 2007, and held 51 percent of what is now Ally Financial.

The fi rm now owns just 14.9 percent of Ally. Cerberus will retain about $1 billion of the loans on Chrysler Financial’s books.

‘This transaction with TD is the right next step for the future of these businesses, their employees and customers,’ said Senior Managing Director and Chief Operating Officer, Cerberus, Mark Neporent. In addition to the existing dealer relationships that TD has in Canada and the United States, Chrysler Financial’s dealer clients serve approximately 1 million customers. Chrysler Financial received a $1.5 billion bailout from the Treasury Department in January 2009 and paid it back in full. TD Bank is one of the 15 largest commercial banks in the United States with $142 billion in assets and has more than 1,000 locations from Maine to Florida, but none in Michigan.

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iat won approvals from unions representing most of its workers in Italy to press ahead with a $1.3 billion plan to build new models at the Mirafiori plant, including Jeep vehicles, in exchange for concessions. The plan to produce vehicles at the Mirafiori plant under a joint Chrysler-Fiat venture marks a further step in the integration of the two automakers’ product planning and manufacturing.

Fiat owns 20 percent of Chrysler, and it has begun producing Fiat cars at Chrysler facilities in North America. The Italian automaker is assembling a version of the tiny Fiat 500 in Mexico, and it will produce a Maserati-brand SUV at Chrysler’s Jefferson North plant in Detroit, using the underpinnings of the Jeep Grand Cherokee.

All the unions at the Italian plant except for the Fiom-Cgil federation signed the agreement in Turin. Fiom represents 10,000 of Fiat’s 83,000 workers in Italy.

Fiat has sought concessions in exchange for increasing output at the Mirafiori plant to as many as 280,000 cars and SUVs a year for the Jeep and Alfa Romeo brands.

Fiat, CEO, Sergio Marchionne had proposed to invest 20 billion euro, or $26 billion, in Fiat’s Italian manufacturing facilities through 2014 and increase their output in exchange for more labour flexibility from unions and fewer strikes.

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GLOBAL WATCH

Volkswagen to Build Cars in Malaysia

V

olkswagen recently signed a pact with Malaysia’s DRBHicom to assemble up to 50,000 vehicles a year in Malaysia, after earlier attempts to enter Southeast Asia’s largest passenger car market failed, according to a report in the Reuters.

The one billion ringgit ($318 million) Malaysian assembly venture will be Volkswagen’s second in the Association of South East Asian Nations, or Asean, region.

Europe’s largest auto maker by sales, which had last year agreed to set up a plant in Indonesia that will produce its Touran multipurpose vehicle, said it is also eyeing other production hubs in the region to further boost sales in Southeast Asia.

VW’s partnership with DRBHicom follows an unsuccessful second attempt by the German fi rm to form an alliance with

1 - 31 January 2011

Malaysia’s state-owned auto maker Proton Holdings. Talks were called off early this year but no reasons were given. Earlier talks that started in 2004 collapsed in November 2007.

DRB-Hicom, which already assembles auto models for Da i m ler’s Mercedes-Ben z, Honda, Isuzu Motors and Suzuki, said it will contribute about 70 percent of the initial investment of about one billion ringgit while Volkswagen will put in the remaining 30 percent. VW and DRB-Hicom said they will start the assembly of V W’s Passat model in DRB-Hicom’s Malaysian plant in the fourth quarter of 2011 with an initial annual capacity of ‘several thousand vehicles.’

Member of Board of Ma nagement, Vol k swagen, Christian Klingler said Germanybased car maker plans to expand

its line-up to include models like the Jetta, and eventually export the Malaysia-assembled cars to other Asean countries.

Volkswagen has sold more than 12,000 vehicles in the Asean region so far this year, but it has plans to expand sales significantly with its new local production facilities, Klingler told reporters.

With Asean’s diverse national markets and vehicle preferences differing across borders, Klingler said it may be difficult to serve the market effectively from just one or two production facilities.

‘We are always looking at opportunities,’ he said, when asked if there were plans for more of such tie-ups in other countries in the region, but he declined to elaborate.

Managing Director, DRBHicom, Mohammed Khamil Jamil said the agreement between

the parties allows for the production of between 40,000 and 50,000 vehicles a year. Khamil earlier had said the two parties aim to produce some 30,000 units annually by 2015. The Malaysian company has a plant with a production capacity of 96,000 vehicles a year, but currently utilises only a fraction of that capacity. According to the Malaysian Automotive Association, vehicle sales for the 11 months ended November had risen 12.5 percent from a year earlier to 550,391 units despite recent economic uncertainties.

Local auto makers Perodua and Proton account for more than 50percent of the total sales, while Japanese manufacturers like Toyota, Honda and Nissan account for the lion’s share of foreign makes sold in the country.

VW expects to sell about 3,000 units in Malaysia this year.

IIHS names the 66 safest vehicles for 2011

T

he number of cars and trucks awarded top safety honours by the Insurance Institute for Highway Safety more than doubled for 2011, with 66 vehicles cited as best for protecting occupants in front, side, rollover and rear crashes, according to a report in the Associated Press.

The Virginia-based industrysupported group, which prods automakers to improve the safety of vehicles, announced its Top Safety Picks for 2011 honouring 40 cars, 25 SUVs and one minivan. Among automakers, Volkswagen and Hyundai and its Kia unit had the most vehicles honoured — nine. Only 27 vehicles qualified for last year’s award, after the group toughened its standards in 2009, requiring automakers to do more to strengthen vehicle roofs and protect occupants during rollover crashes. That number grew to 58 by year’s end after automakers reworked designs and introduced new models to meet the tougher requirements.

Another 10 models were added; two discontinued models dropped off the list. ‘In just a year, automakers have more than doubled the number of vehicles that meet the criteria for Top Safety Pick,’ said Adrian Lund, the institute’s president. ‘That gives consumers shopping for a safer new car or SUV — from economy to luxury models — plenty of choices to consider in most dealer showrooms. In fact, every major automaker has at least one winning model this year.’

Lund said several automakers have requested tests for new models due to ship early next year — and he expects to add more winners.

Volkswagen and its Audi unit added three winners — the Jetta sedan, GTI and Touareg. The institute doesn’t normally test SUVs as large as the Touareg, but VW asked for the test. The Kia Optima and Hyundai Santa Fe were added to the South Korean automaker’s list this year.

General Motors, Ford and Toyota each had eight winners for 2011, up from seven for 2010. The new Chevrolet Cruze — with 10 air bags — was added to GM’s list.

Ford’s new 2011 Explorer won for the fi rst time, and its Fiesta is the only minicar to win the honor this year.

The institute said 92 percent of 2011 model cars and 94 percent of SUVs now have head- and torso-protecting side air bags, while anti-rollover electronic stability control is on 92 percent of cars and 100 percent of SUVs. Under federal requirements, electronic stability control must be on all vehicles by the 2012 model year and side air bags by the 2013 model year. The institute’s efforts to bolster roofs are aimed at helping people survive rollover crashes, which account for more than 8,000 deaths a year.

Rollovers represent 3 percent of all crashes, but account for one-third of all vehicle deaths.

Federal regulators also have toughened roof strength standards and crash ratings.

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C O R P O R AT E

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43

Auto Monitor

BREAKTHROUGH INNOVATIONS

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148

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GLOBAL CORPORATE WATCH

1 - 31 January 2011

International auto round-up EUROPE

AMERICAS

Johnson Controls buys seating maker Keiper

Porsche wins dismissal of hedge fund lawsuits over $2 billion losses

Johnson Controls moving to enhance its seating business, particularly in Europe recently signed an agreement to acquire German seating maker Keiper and its specialty seat business Recaro. It is the second seating-related acquisition by Johnson Controls in Germany. Keiper is a leading producer of recliner system technology. The acquisition will include about 4,750 employees in seven countries, Johnson Controls said. Keiper and Recaro have combined annual revenues of nearly $1 billion. Keiper’s customers include Volkswagen, Mercedes-Benz and General Motors, while Recaro’s major customers include Ford, Volkswagen, Porsche, Lamborghini, Ferrari, Mini, Aston Martin, Cadillac and Honda. Keiper’s Brazilian operations are excluded from the deal. Keiper product line-up includes mechanisms that adjust seat length and height, recliners that adjust the backrest position of vehicle seats, and rear seat latches. The acquisition includes Recaro’s automotive sport and specialty seat portfolio. The acquisition follows Johnson Controls’ acquisition of German seat specialist maker C Rob Hammerstein Group.

Porsche Automobil Holding persuaded a judge to dismiss two lawsuits claiming the carmaker cost hedge funds more than $2 billion by misleading short-sellers in its acquisition of Volkswagen shares in 2008, according to a report in the Associated Press. US District Judge Harold Baer in Manhattan dismissed the complaints fi led by hedge funds Elliott Associates and Black Diamond Offshore and representing a total of 39 US and foreign-based funds. The suits accused Stuttgart-based Porsche of secretly cornering the market in Volkswagen shares. The short-sellers claimed that Porsche misled investors by denying through much of 2008 that it intended to acquire Volkswagen and by using manipulative trades to hide its stock positions. Porsche subsequently revealed in 2008 that it controlled most of Volkswagen’s common stock, causing the shares to surge as short-sellers raced to cover their positions. The court also dismissed claims against Porsche SE’s former CEO, Wendelin Wiedeking, and its former Chief Financial Officer, Holger Haerter.

Fiat, unions finalise deal to make Panda in Italy

Toyota to pay $10 mln in Lexus lawsuit

Fiat and unions reached a fi nal accord for a car plant in Pomigliano, Italy, clearing the way for investments at the site that will produce Panda minicars, according to a report in Bloomberg. The Fismic, Fim, Uilm, Uglm and Associazione Quadri unions signed agreements that will allow 5,600 employees to be hired in January at the factory near Naples. CEO, Fiat, Sergio Marchionne had proposed shifting production of its best-selling Panda from Poland to the underutilised Pomigliano plant and invest around 700 million euro ($920 million) in the factory if unions agree to a plan that includes adding shifts and instituting a six-day workweek.

The latest agreement follows an accord reached last week with most of the unions at Fiat’s Mirafiori plant, the company’s largest factory in Italy.

Toyota agreed to pay $10 million to the family of four people killed in a runaway Lexus crash that led to recalls of millions of the automaker’s vehicles, according to a report in the Associated Press. The amount was released by Orange County lawyer Larry Willis, who represents the dealership that lent the Lexus to the family, attorney Jean-Paul Jassy said. Toyota, which did not admit or deny liability in the settlement, said in a statement it was disappointed the amount had been made public. The August 2009 crash killed off-duty California Highway Patrol Officer Mark Saylor, 45, his wife, their daughter and Saylor’s brother-in-law. Investigators determined that a wrong-size floor mat trapped the accelerator and caused the crash. Toyota recalled millions of cars to replace floor mats that it said could cause the accelerator to jam.

Volkswagen extends CEO Winterkorn’s contract to 2016 Volkswagen extended Chief Executive Officer, Martin Winterkorn’s contract by five years as he aims to complete a merger with Porsche SE and surpass Toyota as the world’s biggest carmaker, according to a report in Bloomberg. The company’s supervisory board unanimously backed the executive’s appointment through 2016. Winterkorn, 63, started as CEO in January, 2007 and his current contract expires December, 2011. Under Winterkorn, Europe’s largest carmaker added Swedish truckmaker Scania to its portfolio and is now merging with Porsche, maker of the 911 sports car. The CEO plans to double production capacity in China with two new plants and open a factory in the US this year as he seeks to beat Toyota in sales and profitability by 2018. Winterkorn, who previously headed VW’s Audi luxury unit, took the top job from Bernd Pischetsrieder, who was ousted less than a year after receiving a contract extension.

Aston Martin, Daimler in talks for manufacturing Maybach Aston Martin is in talks with Daimler over a deal that would see the British luxury carmaker design and build Daimler’s upmarket Maybach brand, according to a report in the Financial Times. The FT said Aston Martin, renowned for making vehicles driven by fictional spy James Bond, would take engine technology from Daimler in exchange for building cars. Daimler gave the underpinnings of a Mercedes-Benz to help Aston Martin build a Lagonda concept car displayed at the Geneva Auto Show in 2009. Daimler, which has inked deals with battery maker BYD to build electric cars, recently said it could not have fi nanced the third generation of its small car brand Smart without a partnership with Renault. Low volume ultra luxury brand Maybach has struggled to lift sales while British-based Aston Martin has been on the lookout for cooperation deals since it was sold by Ford in 2007.

Honda recalls 1.35 million subcompacts over headlight issue Honda will recall 1.35 million Fit and Jazz subcompacts worldwide — including 143,083 Fit in the United States — over potentially faulty headlights. The recall — of 2007-2008 model subcompacts — was prompted after the National Highway Traffic Safety Administration opened a preliminary investigation into the issue in mid-September after receiving eight complaints.

Honda said a variation in the assembly process when installing the wiring harness resulted in wear after repeated use of the headlight switch and a build-up of copper oxide in the electrical connector terminal. That can cause the terminal ends to melt and make the low-beam headlights inoperative, increasing the risk of a crash, Honda said. Honda is also recalling about 35,000 Passport sport utility vehicles to inspect brackets on the rear suspension that could detach and lead to a crash.

VW recalls 377,000 vehicles over fuel leak concerns Volkswagen is recalling more than 377,000 vehicles over concerns on a faulty windshield washer reservoir that could cause fuel leaks. The recall covers 228,236 2007-09 Jetta and Jetta SportWagen models and 38,700 Golf and Rabbit models from the same period. Another 110,350 new Beetle and Beetle convertibles from the 2006-10 model years are also being recalled. A fuel leak could cause a fi re posing a safety risk. A small plastic tab on the windshield wiper reservoir could chafe against an underhood fuel supply line in most of the recalled vehicles. VW dealers will inspect the vehicles, remove the plastic tab from the reservoir in the Jetta, Golf and Rabbit vehicles and replace the fuel line if necessary. VW will inspect and adjust a fastening clamp on the Beetle vehicles.

Canada Lithium to start production at Quebec in 2013 Canada Lithium is likely to start production at its Quebec Lithium Project in 2013, according to a Reuters report. The junior miner, which received positive results from a feasibility study at the mine, expects to start construction in mid-2011 and commission it by the end of 2012. Life-of-mine revenue for Stage 1 is estimated at $1.78 billion and initial capital costs are seen at $202 million.

ASIA China to end subsidies to spur sales in rural, farm regions The Chinese government will end subsidies for vehicles sales in rural areas starting this January, days after announcing a halt in incentives for buyers of small vehicles.

China will continue extending subsidies to buyers of fuel-efficient cars next year. The incentives being stopped in rural areas include those for small cars and trucks, the Ministry of Finance said in a statement on its website. That will end a policy started in March 2009 to foster automobile demand at the height of the global recession. Major mini-vehicle makers, such as Chongqing Changan Automobile and GM-SAIC-Wuling, would be affected by the latest policy shift as minivans and pickup trucks are popular in rural areas. However, many domestic and foreign players, including GM, Changan and Ford, would continue to benefit from Beijing’s handouts for fuel-saving models. The government will raise the sales tax on vehicles with engines of 1.6 litres or smaller to 10 percent from its current 7.5 percent. The tax was 5 percent last year. Policies including a consumption-tax rebate, subsidies for rural car buyers and incentives of up to 18,000 yuan to trade in older models helped China’s total vehicle sales jump 46 percent last year.

Saab Automobile to team up with CATC for China import Saab Automobile took a major step in the expansion of its sales operations by announcing an agreement with China Automobile Trading Co (CATC) regarding the import of Saab vehicles and spare parts for the Chinese market. Beijingbased CATC is a government-owned company with many years’ experience in the automotive business and will play an important role in the new Saab organisation in China. Under the MOU, CATC will,

on behalf of Saab, assume responsibility of the import of Saab cars and parts to China.

CATC will serve as an official service provider to Saab China, a sales company that will be established in the coming period. Saab China will eventually take over all distribution and after sales responsibilities in China from Shanghai GM, thus far responsible for Saab sales in China. Saab China will maintain a dealer network that is initially set to comprise around ten dealers.

Sanyo to boost output of auto lithium batteries Sanyo Electric plans to raise its annual output capacity for automotive lithiumion batteries by 150 percent, by investing about 15 billion yen (about $180 million) in a key plant, the Nikkei reported. Sanyo’s production lines at the Kasai plant in Hyogyo Prefecture, which will double to four in 2011, will produce batteries with capacities of 20 ampere-hours or higher for use in plug-in hybrids and electric vehicles, the daily said. The company produces lithium-ion batteries for hybrid vehicles made by the Volkswagen. By boosting capacity, Sanyo aims to use the plant -- among the top in the world in production capacity for automotive lithium-ion batteries -- as its main supply base for three automakers, Nikkei said. By expanding operations, Sanyo-Panasonic combine is looking to be the global leader in the field of automotive lithium-ion batteries.

Saudi plans $500 million car manufacturing company Saudi Arabia plans to start up its fi rst car manufacturing company with a capital of $500 million and expects a prototype within two years, according to a state media report. Riyadh-based King Saud University’s President Abdullah al-Othman signed a memorandum of understanding with a South Korean car manufacturing fi rm to set up the new company. Up to 15 percent of the fi nancing for the new venture is to be provided by the university’s investment arm, Wadi al-Riyadh Technology, while 30 percent will be covered by the Korean fi rm. A prototype of an economic car suitable for local use will be ready within the next two years, Othman said.

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SIAM DATA

PRODUCTION AND SALES FLASH REPORT FOR NOVEMBER 2010 Category Segment/Subsegment Manufacturer.

Production For the month of November 2009

2010

Cumulative April-November 08-09

A: Passenger Cars- No of seats not over 6 A1: Mini - (Upto 3400 mm) Maruti Suzuki India Ltd (Maruti 800 ) 3,468 2,985 25,668 Tata Motors Ltd (Nano) 3,425 1,320 13,202 Total 6,893 4,305 38,870 A2: Compact (3401-4000mm 1,441 620 10,505 Fiat India Automobiles Pvt Ltd (Palio, Fiat500,Grande Punto) Ford india Pvt Ltd ( Fusion, Figo ) 0 5,544 455 General Motors India Pvt Ltd (Beat, Spark,U-VA) 4,822 5,455 31,742 Honda Siel Cars India ltd (Jazz) 0 480 6,609 Hyundai Motors India Ltd(Santro,Getz, i10, i20) 50,535 38,800 346,638 70,618 81,549 500,987 Maruti Suzuki India Ltd (Alto,Wagon R,Zen,Swift, A-Star, Ritz) Nissan Motor India Pvt Ltd (Micra) 0 9,661 0 SkodaAuto india p.ltd ( Fabia ) 777 1,011 3,653 Tata Motors Ltd (Indica) 10,767 9,332 75,829 Volkswagen India Pvt Ltd (Polo) 0 2,075 0 Total 138,960 154,527 976,418 A3: Mid -Size (4001-4500mm) 0 0 0 BMW India Pvt Ltd (Z4 Roadster) Ford India Pvt Ltd (Ford ikon,Fusion,Fiesta) 2,641 1,505 19,504 General Motors India Pvt Ltd (Cheverlet Aveo NB) 412 299 2,148 Hindustan Motors Ltd (Ambassador, Lancer,Cedia) 933 652 5,546 Honda Siel Cars India Ltd (City) 4,870 4,597 28,934 Hyundai Motors India Ltd (Accent,Verna) 4,516 4,581 30,059 Mahindra Renault Pvt Ltd (Logan) 71 960 4,234 Maruti Suzuki India Ltd (SX4,Dzire) 9,226 11,402 62,497 Nissan Motor India Pvt Ltd (Nissan 370Z) 0 0 0 Skoda Auto India Pvt Ltd (Corolla) 0 160 0 Tata Motors Ltd (Indigo,Marina) 3,617 2,441 8,142 Volkswagen - Audi (TT, R8) 0 0 0 Volkswagen India Pvt Ltd (Beetle) 0 2,459 0 Total 26,286 29,056 161,064 A4 : Executive (4501-4700mm) 92 93 712 BMW india pvt Ltd (3 Series) Fiat India Automobiles Pvt Ltd (Linea) 1,016 103 7,703 General Motors India Pvt Ltd (cheverlet Optra, Cruze) 499 970 2,008 Honda Siel Cars India Ltd (Civic) 600 4 3,798 Hyundai Motors India Ltd (Elantra) 0 0 0 Mercedes-Benz India Pvt Ltd (C-Class, 109 144 1,065 SLK Roadster, CLK Cabriolet, E-Coupe) Skoda Auto India Pvt Ltd (Octavia,Laura) 777 458 4,024 Toyota Kirloskar Motor Pvt Ltd (corolla) 796 761 6,172 Volkswagen - Audi (Q5) 0 0 0 Volkswagen India Pvt Ltd (Jetta) 0 234 273 Total 3,889 2,767 25,755 A5 : Premium (4701-5000mm) 164 236 1,083 BMW india pvt Ltd ( 5 & 6 Series) Honda Siel Cars India Ltd ( Accord ) 240 280 1,950 Hyundai Motors India Ltd ( Sonata ) 2 8 322 Mercedes-Benz India Pvt Ltd (E-Class, CLS) 159 251 678 Nissan Motor India Pvt Ltd (Teana)** 0 0 0 Skoda Auto India Pvt Ltd (Superb) 295 295 1,977 Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 Volkswagen - Audi (A4,A6)* 0 0 0 Volkswagen India Pvt Ltd (Passat, Touareg) 0 0 55 Total 860 1,070 6,065 A6: Luxury (5001mm&abve) 0 0 0 BMW india pvt Ltd (7 Series ) Mercedes-Benz India Pvt Ltd ( S-Class) 22 32 232 Volkswagen - Audi (Q7,A8) 0 0 0 Volkswagen India Pvt Ltd (Phaeton) 0 0 0 Total 22 32 232 176,910 191,757 1,208,404 Total A Utility Vehicles B: Max. Mass upto 3.5 tn, B1(a): No of seats not over 7 0 0 0 BMW india Pvt Ltd (X3, X5, X6) Force Motors Ltd (trax) 1 0 14 Ford India Pvt Ltd (Endeavour) 235 81 1,435 General Motors India Pvt Ltd (Tavera, Captiva) 605 637 3,810 Hindustan Motors Ltd (Pajero) 141 170 1,038 Honda Siel Cars India Ltd (CR-V) 0 0 0 Hyundai Motors India Ltd (Tucson) 0 0 0 Mahindra & Mahindra Ltd (Scorpio, Bolero, 7,254 8,397 57,943 Soft Tops, Hard Tops, Xylo) Maruti Suzuki India Ltd (Vitara) 0 0 0 Mercedes-Benz India pvt. Ltd (GL-Class, M Class) 0 0 0 Nissan Motor India Pvt Ltd (X-Trail)* 0 0 0 Tata Motors Ltd (Safari) 1,344 2,325 12,161 Toyota Kirloskar Motor Pvt Ltd (Innova,Prado) 2,507 2,568 15,958 Total 12,087 14,178 92,359 (b) :No of seat inculding driver exceeding 7 but not exceeding 9(7+1&8+1)( M1(B2) ) 0 0 10 Force Motors Ltd (Trax) General Motors India Pvt Ltd (Tavera) 103 119 1,092 International Cars & Motors Ltd (Rhino) 70 29 583 Mahindra & Mahindra Ltd (Scorpio, Bolero, 4,775 3,879 35,310 Soft Tops, Hard Tops, Xylo) Maruti Suzuki India Ltd (Gypsy) 292 237 1,829 Tata Motors Ltd (Sumo, Safari, Winger) 658 963 3,227 Toyota Kirloskar Motor Pvt Ltd (Innova) 2,334 1,809 16,555 Total 8,232 7,036 58,606 20,319 21,214 150,965 Total B1 B2: Max Mass upto 5 tonnes (a) : No of seat inculding driver not exceeding 13(M2(A1)) Force Motors Ltd (Trax, Traveller) 338 518 3,467 General Motors India Pvt Ltd (Tavera) 599 725 3,757 Mahindra & Mahindra Ltd (Bolero, Soft Tops, Hard Tops) 110 0 6,999 Tata Motors Ltd (Sumo, Winger) 111 107 5,625 Total B2 1,158 1,350 19,848 21,477 22,564 170,813 Total Utility Vehicles (Uvs) C :Multi Purpose Vehicles (MPVs)-Van type vehicles & Max Mass not excdding 3.5 tonnes (M1( c )) Van Type Force Motors Ltd (trip) 0 47 0 Maruti Suzuki India Ltd (Omini,Versa) 8,527 15,102 61,796 Tata Motors Ltd (ACE-Magic) 4,545 3,763 31,760 Total MPVs 13,072 18,912 93,556 211,459 233,233 1,472,773 Total Passenger Vehicles (PVs) Commercial Vehicles M&HCVs A: Passenger Carriers, A1: Max mass not over 12 tn (b): No of seats over 13 117 46 966 Ashok Leyland Ltd JCBL Ltd 1 0 1 Swaraj Mazda Ltd 215 208 1,507 Tata Motors Ltd 122 499 2,990 VE CVs - Eicher 100 53 1,237 Total A1 555 806 6,701 A2: Max mass exceeding not over 16.2 tn (b): No of seats over 13 Ashok Leyland Ltd 2,024 2,461 10,504 JCBL Ltd 76 0 99 Swaraj Mazda Ltd 1 2 14 Tata Motors Ltd 1,534 1,025 9,985 VE CVs - Eicher 23 10 153 Volvo Buses India Pvt Ltd 35 7 374 Total A2 3,693 3,505 21,129 A3: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(C)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 11 38 45 Total M&HCVs(passenger carriers) 4,259 4,349 27,875 B: Goods Carriers B1: Max mass over 7.5 tn & less than 12 tn Ashok Leyland Ltd 196 168 1,011 Swaraj Mazda Ltd 370 474 2,336 Tata Motors Ltd 1,661 1,212 12,416 VE CVs - Eicher 1,423 1,843 9,870 Total 3,650 3,697 25,633 B2: Max mass not over 16.2 tn (a): Max mass 12-16.2 tn Ashok Leyland Ltd 1,220 2,041 8,320 Tata Motors Ltd 3,251 4,681 21,186 VE CVs - Eicher 192 307 1,212 Total B2 4,663 7,029 30,718 B3: Max mass over 16.2 tn (a): Rigid Vehicles (i) Max mass 16.2-25 tn Ashok Leyland Ltd 1,949 1,153 9,290 Asia Motor Works Ltd 337 461 1,500 Force Motors Ltd 0 0 1 Mahindra Navistar Automotives Ltd 0 88 0 Tata Motors Ltd 4,664 4,995 33,253 VE CVs - Eicher 24 59 196 VE CVs - Volvo 2 0 6 Total 6,976 6,756 44,246 (b) Max mass over 25 tn 396 664 796 Ashok Leyland Ltd Daimler India Commercial Vehicles Pvt Ltd* 0 23 0 Kamaz Vectra Motors Ltd NA NA NA Mahindra Navistar Automotives Ltd 0 163 0 Mercedes-Benz India Pvt Ltd 29 0 70 Tata Motors Ltd 900 3,874 5,888 VE CVs - Eicher 11 92 139

Source: SIAM

Domestic Sales For the month of Cumulative November April-November

09-10

2009

26,005 41,812 67,817

3,040 3,406 6,446

8,974 56,028 48,338 1,336 350,272 604,972 30,063 4,550 93,147 16,392 1,214,072

2010

Exports For the month of November

08-09

09-10

2009

2,440 509 2,949

22,020 13,924 35,944

17,184 40,976 58,160

757 0 757

1,158 15 4,678 546 25,807 56,005 0 598 9,111 0 97,918

722 5,482 5,618 330 28,840 74,063 1,029 970 5,716 1,975 124,745

9,504 508 32,405 5,978 179,734 407,271 0 3,974 75,619 0 714,993

8,598 50,810 46,908 3,462 212,669 521,031 5,371 4,546 64,350 16,341 934,086

0 13,440 2,911 5,601 32,745 39,389 7,308 84,218 0 291 30,305 0 5,112 221,320

6 2,149 399 922 3,856 2,339 279 8,741 0 0 5,963 0 13 24,667

4 1,823 291 420 3,003 2,647 876 11,115 0 189 6,009 2 2,443 28,822

12 18,276 2,248 5,528 27,860 20,582 3,581 61,770 0 0 29,360 0 13 169,230

1,158 6,218 8,364 3,191 0 1,516

86 807 631 551 0 97

152 301 879 477 0 159

4,558 6,721 0 3,530 35,256

609 819 23 94 3,717

1,509 1,544 169 1,454 0 2,776 0 0 636 8,088

Cumulative April-November

2010

08-09

09-10

1,524 0 1,524

3,231 0 3,231

8,503 0 8,503

81 0 48 4 24,694 10,439 0 0 785 0 36,051

0 793 6 0 11,507 8,235 6,551 0 253 0 27,345

365 0 302 34 178,576 87,212 0 16 2,909 0 269,414

903 4,928 203 15 141,694 86,934 15,737 0 4,317 0 254,731

55 11,605 2,747 5,284 30,751 25,481 5,824 83,056 6 289 58,072 7 5,705 228,882

0 335 13 0 2 2,409 0 65 0 0 119 0 0 2,943

0 11 6 0 1 1,495 0 25 0 0 71 0 0 1,609

0 1,041 49 0 16 11,933 1,000 336 0 0 803 0 0 15,178

0 758 89 1 33 14,197 1,500 508 0 0 1,187 0 0 18,273

745 7,575 2,626 3,698 0 1,136

1,524 6,358 7,354 3,338 2 1,617

0 34 1 0 0 0

0 0 0 0 0 0

0 237 3 0 0 0

0 119 3 3 0 0

403 784 59 191 3,405

5,006 6,121 150 1,449 28,506

4,436 6,713 433 2,332 34,107

0 0 0 0 35

0 0 0 0 0

0 0 0 0 240

0 0 0 0 125

114 172 15 117 11 218 24 63 73 807

313 260 14 265 19 279 9 210 0 1,369

971 1,864 297 641 127 1,899 185 719 440 7,143

1,754 1,629 181 1,500 179 2,735 299 1,405 661 10,343

0 0 0 0 0 0 0 0 0 0

0 3 0 0 0 0 0 0 0 3

0 0 0 0 0 0 0 0 0 0

0 8 0 0 0 0 0 0 0 8

0 414 0 0 414 1,546,967

29 52 67 0 148 133,703

76 43 85 3 207 161,497

256 301 379 0 936 956,752

383 382 403 24 1,192 1,266,770

0 0 0 0 0 39,786

0 0 0 0 0 30,481

0 0 0 0 0 288,063

0 0 0 0 0 281,640

0 24 2,091 5,146 1,781 0 0 65,520

21 3 356 675 145 1 1 6,323

59 0 199 732 160 35 39 7,950

361 16 1,403 4,780 1,034 156 13 55,942

315 24 2,017 6,235 1,777 371 113 64,570

0 0 0 0 0 0 0 175

0 0 0 0 0 0 0 78

0 0 0 2 0 0 0 611

0 0 0 0 0 0 0 800

0 0 0 16,098 24,509 115,169

8 9 14 1,469 2,594 11,619

4 54 31 2,079 2,642 13,984

67 66 107 12,189 16,136 92,270

70 328 331 15,455 24,805 116,411

0 0 0 18 0 193

0 0 0 24 0 102

0 0 0 76 0 689

0 0 0 175 0 975

0 886 489 42,770

0 103 75 4,274

0 120 52 3,599

0 1,638 770 34,231

0 898 480 41,872

0 0 0 30

0 0 0 159

0 0 38 270

0 1 0 1,000

3,108 8,283 17,717 73,253 188,422

245 349 2,357 7,403 19,022

195 275 1,807 6,048 20,032

2,509 2,388 16,479 58,015 150,285

4,358 3,807 17,690 69,105 185,516

8 17 0 55 248

11 35 0 205 307

48 124 0 480 1,169

128 274 0 1,403 2,378

5,225 6,140 1,428 650 13,443 201,865

307 570 141 568 1,586 20,608

486 724 8 1,148 2,366 22,398

3,467 3,404 7,109 7,209 21,189 171,474

5,140 6,032 1,450 8,085 20,707 206,223

15 0 10 2 27 275

0 0 0 10 10 317

19 5 68 129 221 1,390

Force Motors Ltd 0 4 30 85 119 2,497

178 107,014 32,868 140,060 1,888,892

0 8,320 4,113 12,433 166,744

34 14,686 4,262 18,982 202,877

0 60,771 31,011 91,782 1,220,008

102 105,182 33,075 138,359 1,611,352

0 179 25 204 40,265

0 256 38 294 31,092

0 904 120 1,024 290,477

0 1,486 90 1,576 285,713

1,097 0 2,335 3,744 1,699 8,875

66 1 125 289 111 592

82 0 150 379 73 684

753 1 1,181 3,174 1,239 6,348

1,069 0 2,010 4,145 1,703 8,927

30 0 0 7 0 37

10 0 0 69 0 79

173 0 0 50 7 230

151 0 4 390 117 662

15,164 14 55 12,012 133 181 27,559

1,425 76 0 1,420 14 40 2,975

1,628 0 4 905 13 9 2,559

8,047 99 9 8,695 142 337 17,329

11,729 14 47 10,260 114 188 22,352

162 0 0 283 7 0 452

513 0 0 267 1 0 781

954 0 0 2,112 45 0 3,111

2,805 0 0 3,217 12 0 6,034

147 36,581

16 3,583

37 3,280

45 23,722

143 31,422

0 489

0 860

0 3,341

0 6,696

1,907 2,828 11,442 13,890 30,067

133 329 1,589 1,266 3,317

99 361 1,942 1,664 4,066

829 2,141 11,633 9,421 24,024

1,773 2,469 14,556 13,553 32,351

33 31 299 110 473

34 23 120 43 220

253 151 1,075 427 1,906

188 138 1,548 413 2,287

13,055 31,117 2,442 46,614

791 3,044 116 3,951

1,530 3,341 172 5,043

6,455 19,477 567 26,499

10,326 23,957 1,849 36,132

137 374 69 580

618 494 8 1,120

1,347 2,852 648 4,847

2,849 3,623 343 6,815

15,036 3,405 0 458 36,888 579 1 56,367

1,257 320 0 0 4,389 42 2 6,010

451 564 0 30 4,489 36 0 5,570

8,518 1,625 0 0 31,341 227 6 41,717

14,398 3,539 0 87 35,594 493 12 54,123

0 0 0 0 195 0 0 195

53 0 0 0 199 0 0 252

214 0 0 0 1,808 63 0 2,085

53 0 0 0 1,619 4 0 1,676

5,912 121 NA 299 101 28,864 389

220 0 NA 0 28 726 19

16 18 NA 62 0 2,350 51

856 0 NA 0 138 5,129 162

5,298 68 NA 90 83 16,596 325

0 0 NA 0 0 6 0

0 0 NA 0 0 21 0

5 0 NA 0 0 153 12

0 0 NA 0 0 466 0

1 - 31 January 2011

SIAM DATA

Category Segment/Subsegment Manufacturer.

Production

Domestic Sales Cumulative April-November

Exports

Cumulative April-November

2009

08-09

09-10

2009

2010

08-09

09-10

2009

2010

08-09

09-10

418 7,311 51,557

608 36,294 92,661

83 1,076 7,086

107 2,604 8,174

532 6,817 48,534

529 22,989 77,112

0 6 201

0 21 273

0 170 2,255

0 466 2,142

0 0

0 0

0 0

0 0

0 0

0 0

50 50

0 0

120 120

433 433

1,600 1 1,601 798 412 0 7 0 1,217 2,818 110,726 138,601

2,027 0 2,027 2,967 498 0 65 96 3,626 5,653 174,995 211,576

106 501 607 191 82 549 2 1 825 1,432 15,786 19,369

11 600 611 25 52 697 1 6 781 1,392 18,675 21,955

1,478 2,936 4,414 1,176 398 3,460 34 39 5,107 9,521 108,578 132,300

2,208 5,284 7,492 2,964 496 6,850 53 86 10,449 17,941 163,536 194,958

5 0 5 5 0 0 0 0 5 60 1,314 1,803

16 0 16 6 0 0 0 0 6 22 1,635 2,495

113 0 113 64 0 10 0 0 74 307 9,315 12,656

61 0 61 31 0 0 0 0 31 525 11,769 18,465

3,342 1 2,126 0 2,889 8,358

5,356 4 0 2,211 2,307 9,878

396 0 219 0 284 899

437 0 0 179 311 927

3,247 4 1,921 0 3,515 8,687

5,176 4 0 2,132 3,235 10,547

31 0 0 0 4 35

0 0 0 0 8 8

102 0 112 0 29 243

84 0 0 0 177 261

604 108 1,831 0 1,281 9,298 1,482 14,604 22,962

675 151 0 1,532 1,975 9,534 1,858 15,725 25,603

48 2 33 0 103 801 92 1,079 1,978

42 5 0 49 197 681 93 1,067 1,994

451 105 1,807 0 1,097 8,794 1,187 13,441 22,128

446 142 0 1,509 1,967 8,812 1,672 14,548 25,095

27 0 18 0 0 97 35 177 212

2 0 0 0 0 273 48 323 331

203 0 126 0 21 997 327 1,674 1,917

75 0 12 0 24 1,558 293 1,962 2,223

1,657 152 45,734 7,360 84,142 139,045

4,262 320 71,221 6,192 111,126 193,121

245 8 5,474 1,116 9,520 16,363

520 20 7,582 474 12,205 20,801

1,611 133 42,096 7,276 75,397 126,513

4,086 262 63,718 6,045 91,660 165,771

0 0 825 0 1,480 2,305

20 0 943 0 1,929 2,892

4 0 3,153 34 5,401 8,592

28 0 6,680 12 15,423 22,143

1,114 787 0 2,640 4,541

794 0 1,088 5,355 7,237

93 139 0 391 623

87 0 6 637 730

1,113 791 0 1,324 3,228

805 0 1,130 4,813 6,748

0 0 0 26 26

0 0 0 59 59

9 0 0 74 83

7 0 0 478 485

0 93 2,525 0 1,179 14,767 2,928 21,492 165,078 188,040 326,641

24 148 0 2,601 972 14,963 4,237 22,945 223,303 248,906 460,482

0 10 387 0 139 1,632 354 2,522 19,508 21,486 40,855

1 16 0 350 167 1,884 416 2,834 24,365 26,359 48,314

0 80 1,969 0 1,102 15,281 2,217 20,649 150,390 172,518 304,818

1 141 0 2,471 678 13,062 3,064 19,417 191,936 217,031 411,989

0 0 82 0 83 263 62 490 2,821 3,033 4,836

0 0 22 0 60 333 84 499 3,450 3,781 6,276

0 2 553 0 381 1,469 466 2,871 11,546 13,463 26,119

0 4 138 0 300 2,228 557 3,227 25,855 28,078 46,543

0 17,033 17,033

9,283 12,952 22,235

0 2,167 2,167

672 1,262 1,934

0 16,644 16,644

7,780 15,076 22,856

0 0 0

0 0 0

0 0 0

0 0 0

3,710 131,453 463,140 26,931 77,860 189,683 892,777

0 214,005 603,323 104,855 142,404 282,247 1,346,834

154 15,890 68,269 7,020 11,113 22,070 124,516

0 27,168 68,278 13,476 20,587 34,171 163,680

3,356 127,701 452,351 29,488 77,663 183,546 874,105

27 204,118 588,744 95,679 142,080 275,169 1,305,817

104 392 930 176 0 856 2,458

0 1,960 1,234 176 0 800 4,170

728 3,436 8,308 793 61 6,676 20,002

0 10,528 8,888 1,162 90 10,489 31,157

0 NA 763 763 910,573

0 NA 0 0 1,369,069

3 NA 0 3 126,686

0 NA 0 0 165,614

290 NA 290 580 891,329

0 NA 68 68 1,328,741

0 NA 0 0 2,458

0 NA 0 0 4,170

0 NA 133 133 20,135

0 NA 0 0 31,157

857,087 2,743,511 66 49,497 0 297,378 3,947,539

1,250,172 3,023,511 129,896 50,852 7,231 419,588 4,881,250

103,839 340,811 14 5,045 0 22,057 471,766

84,033 356,320 12,478 4,164 1,706 36,376 495,077

519,530 2,692,269 27 44,263 0 236,499 3,492,588

795,920 2,952,221 117,397 49,954 4,370 331,677 4,251,539

65,297 7,107 5 1,422 0 5,410 79,241

45,630 8,758 2,812 572 0 5,017 62,789

361,748 56,332 19 3,281 0 52,466 473,846

434,546 72,128 14,125 6,622 0 65,219 592,640

699,154 158,165 307,797 133,216 NA 32,494 121,181 1,452,007

1,050,746 210,491 364,690 178,807 NA 29,561 161,371 1,995,666

58,934 16,482 36,536 12,008 NA 3,280 10,889 138,129

109,141 25,818 38,693 18,544 NA 4,852 13,158 210,206

566,255 152,283 267,089 112,829 NA 31,942 89,734 1,220,132

835,961 199,386 326,925 129,858 NA 29,011 95,085 1,616,226

14,320 696 7,521 6,123 NA 352 6,746 35,758

26,232 1,342 5,921 7,028 NA 0 8,444 48,967

127,002 5,735 40,522 31,886 NA 1,047 30,330 236,522

240,270 8,521 36,844 53,366 NA 449 64,611 404,061

0 0 35,789 0 35,789 5,435,335

0 0 34,727 0 34,727 6,911,643

0 1 4,378 0 4,379 614,274

0 2 4,897 0 4,899 710,182

6 9 34,377 0 34,392 4,747,112

0 25 33,132 0 33,157 5,900,922

0 0 146 0 146 115,145

0 0 135 0 135 111,891

0 0 1,121 0 1,121 711,489

0 0 1,606 0 1,606 998,307

373,236 373,236

459,769 459,769

49,653 49,653

54,574 54,574

369,860 369,860

454,840 454,840

996 996

80 80

3,438 3,438

4,577 4,577

2,549 18 2,567 6,721,711

0 0 0 8,740,481

0 0 0 790,613

0 0 0 930,370

2,482 229 2,711 6,011,012

0 0 0 7,684,503

0 0 0 118,599

0 0 0 116,141

50 0 50 735,112

0 0 0 1,034,041

2,519 205,734 123 19,665 88,228 1,698 7,576 325,543

6,248 285,729 0 27,405 101,867 2,508 25,096 448,853

407 14,462 43 2,765 11,743 211 1,000 30,631

781 14,983 0 3,413 11,508 205 1,650 32,540

2,520 110,834 115 19,585 85,704 1,710 7,094 227,562

6,136 132,616 5 26,443 91,920 2,523 15,984 275,627

0 18,800 0 49 324 0 101 19,274

0 19,007 0 286 1,091 0 1,509 21,893

11 95,780 0 105 2,618 0 423 98,937

139 157,497 0 1,624 9,971 0 8,379 177,610

570 30 0 1,755 2,355 327,898

84 2,629 0 1,731 4,444 453,297

38 0 0 236 274 30,905

0 332 0 268 600 33,140

217 210 0 1,708 2,135 229,697

26 1,881 0 1,620 3,527 279,154

84 0 0 0 84 19,358

0 0 0 0 0 21,893

392 0 0 0 392 99,329

84 0 0 0 84 177,694

4,538 7,027 9,151 32,239 1,894 54,849

5,440 2,229 7,638 39,052 2,833 57,192

692 849 1,353 4,666 229 7,789

483 205 476 5,332 290 6,786

4,551 6,466 9,188 32,465 1,888 54,558

5,467 1,942 7,549 38,451 2,719 56,128

0 0 13 17 0 30

0 0 12 82 0 94

16 0 93 205 0 314

2 174 180 681 0 1,037

824 20 0 1,710 2,554 57,403 385,301 8,906,426

15 2,764 24 1,363 4,166 61,358 514,655 11,604,510

86 0 0 240 326 8,115 39,020 1,037,232

0 247 0 247 494 7,280 40,420 1,221,981

800 17 0 1,686 2,503 57,061 286,758 7,822,596

106 2,670 0 1,493 4,269 60,397 339,551 10,047,395

0 0 0 0 0 30 19,388 183,088

0 0 12 0 12 106 21,999 175,508

9 0 0 0 9 323 99,652 1,151,360

0 0 24 0 24 1,061 178,755 1,545,052

2010

For the month of November

151

For the month of November VE CVs - Volvo 83 91 Total 1,419 4,907 8,395 11,663 Total B3 B4: Max mass over 16.2 tn - Haulage tractor (a) Max. Mass exceeding 16.2 tonnes but not exceeding 26.4 tonnes Ashok Leyland Ltd 0 0 Total 0 0 (b) Max. mass exceeding 26.4 tonnes but not exceeding 35.2 tonnes 136 81 Ashok Leyland Ltd Tata Motors Ltd 0 0 Total 136 81 Ashok Leyland Ltd 232 70 82 40 Asia Motor Works Ltd Tata Motors Ltd 0 0 VE CVs - Eicher 5 10 VE CVs - Volvo 0 3 Total 319 123 455 204 Total B4 Total M&HCVs (Goods Carriers) 17,163 22,593 Total M&HCVs 21,422 26,942 2: Max mass upto 5 tonnes LCVs A: Passenger carriers A1: Max mass upto 5 tn (M2(A2)) (a): No of seats over 13 Force Motors Ltd 461 518 Hindustan Motors Ltd 0 0 Mahindra & Mahindra Ltd 166 0 Mahindra Navistar Automotives Ltd 0 228 Tata Motors Ltd 246 200 Total A1 873 946 A2: Max mass 5-7.5 tn (b): No of seats up to & over 13 Ashok Leyland Ltd 81 40 Force Motors Ltd 5 0 Mahindra & Mahindra Ltd 28 0 Mahindra Navistar Automotives Ltd 0 33 Swaraj Mazda Ltd 115 133 Tata Motors Ltd 551 1,093 VE CVs - Eicher 142 62 Total 922 1,361 1,795 2,307 Total LCVs (Passenger Carriers) B Goods Carrier B1: Max mass not over 3.5 tn Force Motors Ltd 203 525 Hindustan Motors Ltd 8 39 Mahindra & Mahindra Ltd 6,061 9,495 Piaggio Vehicles Pvt.Ltd 1,200 251 Tata Motors Ltd 10,974 15,207 Total 18,446 25,517 B2:Max mass 3.5-5 tn 133 90 Force Motors Ltd Mahindra & Mahindra Ltd 129 0 Mahindra Navistar Automotives Ltd 0 2 Tata Motors Ltd 472 661 Total 734 753 B3: Max mass 5-7.5 tn 0 0 Ashok Leyland Ltd Force Motors Ltd 8 20 Mahindra & Mahindra Ltd 473 0 Mahindra Navistar Automotives Ltd 0 436 Swaraj Mazda Ltd 136 213 Tata Motors Ltd 1,861 1,976 VE CVs - Eicher 460 673 Total 2,938 3,318 22,118 29,588 Total LCVs (Goods Carriers) Total LCVs 23,913 31,895 Total Commercial Vehicles 45,335 58,837 Two Wheelers A: Scooter/Scooterette, Wheelsize not over 12’’ A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 0 947 TVS Motor Company Ltd 2,426 1,200 Total 2,426 2,147 A2: Engine capacity 75-125 cc 262 0 Bajaj Auto Ltd Hero Honda Motors Ltd 16,908 29,374 Honda Motorcycle & Scooter India (Pvt) Ltd 69,732 73,989 Mahindra Two Wheelers Ltd 6,895 14,483 Suzuki Motorcycle India Pvt Ltd 11,192 20,873 TVS Motor Company Ltd 24,746 34,792 Total 129,735 173,511 A3: Engine capacity 125 -250 cc 0 0 Honda Motorcycle & Scooter India (Pvt) Ltd LML Limited NA NA Mahindra Two Wheelers Ltd 0 0 Total 0 0 132,161 175,658 Total Scooter/Scooterettee B: Motorcycle/Step-Through: Wheel size more than 12” B2: Engine capacity 75-125 cc Bajaj Auto Ltd 165,755 126,379 Hero Honda Motors Ltd 349,656 359,706 Honda Motorcycle & Scooter India (Pvt) Ltd 36 16,055 India Yamaha Motor Pvt Ltd 5,836 4,397 Mahindra Two Wheelers Ltd 0 2,759 TVS Motor Company Ltd 33,654 48,218 Total 554,937 557,514 B3: Engine capacity 125-250 cc 80,601 130,446 Bajaj Auto Ltd Hero Honda Motors Ltd 17,480 27,976 Honda Motorcycle & Scooter India (Pvt) Ltd 45,113 46,368 India Yamaha Motor Pvt Ltd 19,869 26,344 LML Limited NA NA Suzuki Motorcycle & Scooter India (Pvt) Ltd 3,600 5,177 TVS Motor Company Ltd 17,593 19,346 Total 184,256 255,657 B4: Engine capacity over 250 cc 0 0 Honda Motorcycle & Scooter India (Pvt) Ltd India Yamaha Motor Pvt Ltd 0 0 Royal Enfield (Unit of Eicher Ltd) 4,423 4,954 Suzuki Motorcycle India Pvt Ltd 0 0 Total 4,423 4,954 743,616 818,125 Total Motor Cycles/Step-Throughs C: Mopeds: Engine capacity <75 cc, wheels over 12” TVS Motor Company Ltd 50,629 55,062 Total 50,629 55,062 D: Electric two Wheelers 0 0 Electrotherm (india)Ltd TVS Motor Company Ltd 0 0 Total 0 0 926,406 1,048,845 Total Two Wheelers III Three Wheelers (CVs) A: Passenger Carriers A1:No. of seats including driver not exceeding 4 & Max.Mass not exceeding 1 tonnes Atul Auto Limited 409 799 Bajaj Auto Ltd 33,073 35,588 Force Motors Ltd 15 0 Mahindra & Mahindra Ltd 2,890 3,797 Piaggio Vehicles Pvt.Ltd 12,604 13,226 Scooters india Ltd 209 203 TVS Motor Company Ltd 1,056 2,973 Total 50,256 56,586 A2: No.of seats including Driver exceeding 4 but not exceeding 7 & Max.Mass exceeding 1.5 tonnes Force Motors Ltd 87 0 Mahindra & Mahindra Ltd 0 460 Piaggio Vehicles Pvt.Ltd 0 0 Scooters india Ltd 266 248 Total 353 708 50,609 57,294 Total Passenger Carrier B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 697 472 Bajaj Auto Ltd 1,250 266 Mahindra & Mahindra Ltd 1,364 510 Piaggio Vehicles Pvt.Ltd 4,723 5,389 Scooters india Ltd 225 362 Total 8,259 6,999 B2: Others 101 0 Force Motors Ltd Mahindra & Mahindra Ltd 2 302 Piaggio Vehicles Pvt.Ltd 0 10 Scooters india Ltd 255 212 Total 358 524 8,617 7,523 Total Goods Carrier Total Three Wheelers 59,226 64,817 Grand Total of all Categories 1,242,426 1,405,732 * Exports of Ford indicate CKDs

Auto Monitor

For the month of November

Cumulative April-November

152

Auto Monitor

1 - 31 January 2011

N AMERICAN ASSEMBLY

AUTOFACTS Global Automotive Outlook, 2009 Q1 Release PricewaterhouseCoopers LLP

North America Assby Tracking 9-2010 (Tracking by Brand & Nameplate) October 2010

Last 3 Months

Ownership Org/ Brand & Nameplate

Volume

YOY % Chg

AM General Corporation (USA) Hummer H2 AutoAlliance International (USA) Ford Mustang Mazda Mazda6 BMW (Germany) BMW X3 BMW X5 BMW X6 CAMI Automotive (Canada) Chevrolet Equinox GMC Terrain Pontiac Torrent Suzuki XL-7 Chrysler Corp LLC (USA) Chrysler 300 Chrysler PT Cruiser Chrysler Sebring Chrysler Town & Country Dodge Avenger Dodge Caliber Dodge Caravan Dodge Challenger Dodge Charger Dodge Dakota Dodge Journey Dodge Nitro Dodge Ram Pickup Dodge Viper Jeep Commander Jeep Compass Jeep Grand Cherokee Jeep Liberty Jeep Patriot Jeep Wrangler Jeep Wrangler Unlimited Mitsubishi Raider Volkswagen Routan Chrysler Group LLC (USA) Chrysler 300 Chrysler PT Cruiser Chrysler Sebring Chrysler Town & Country Dodge Avenger Dodge Caliber Dodge Caravan Dodge Challenger Dodge Charger Dodge Dakota Dodge Journey Dodge Nitro Dodge Ram Pickup Dodge Viper Jeep Commander Jeep Compass Jeep Grand Cherokee Jeep Liberty Jeep Patriot Jeep Wrangler Jeep Wrangler Unlimited Ram Pickup Volkswagen Routan Daimler AG (Germany) Dodge Sprinter Freightliner Sprinter Mercedes-Benz GL-Class Mercedes-Benz M-Class Mercedes-Benz R-Class Ford Motor Company (USA) Ford Crown Victoria Ford Econoline Ford Edge Ford Escape Ford Expedition Ford Explorer Ford Explorer Sport Trac Ford Fiesta Ford Flex Ford Focus Ford F-Series Ford Fusion Ford Ranger Ford Taurus Ford Taurus X Lincoln Mark LT Lincoln MKS Lincoln MKT Lincoln MKX Lincoln MKZ Lincoln Navigator Lincoln Town Car Mazda B-Series Mazda Tribute Mercury Grand Marquis Mercury Mariner Mercury Milan Mercury Mountaineer Mercury Sable Fuji Heavy Industries (Japan) Subaru Legacy Subaru Tribeca Toyota Camry General Motors Company (USA) Buick Enclave Buick LaCrosse Buick Lucerne Cadillac CTS Coupe Cadillac CTS Sedan

10,769 5,354 5,415 18,537 6,022 8,809 3,706 148,521 8,528 2,029 11,036 3,377 3,338 17,884 4,807 2,712 1,347 13,962 2,492 38 21,002 5,760 5,900 5,806 8,251 30,252 12,512 1,424 2,520 7,056 1,512 231,074 6,556 10,733 14,888 27,417 5,153 8,809 1,201 12,355 2,843 22,634 64,602 25,890 5,688 7,026 111 1,987 472 3,204 3,492 1,065 1,008 531 1,236 1,236 937 23,440 14,886 577 7,977 254,698 5,917 5,660 2,781 904 4,054

-100.0% -100.0% -26.1% -30.4% -21.3% 68.5% 19.0% 2.9% -100.0% -100.0% -100.0% 28.3% 86.0% -100.0% -53.7% 4.9% -50.7% 26.6% -3.0% -65.6% -15.0% 22.9% 4.6% -100.0% -100.0% -100.0% -99.0% 1365.6% -12.1% -20.2% 66.5% 62.9% -100.0% 10.4% -100.0% 179.2% 16.8% 11.9% 30.1% 13.6% 39.4% 117.0% 43.6% 27.4% 39.9% 55.9% 56.0% -3.5% 2.9% 3.7% 2.5% -46.9% -19.0% 6.7% -9.8% -60.7% 151.3% 131.3% 26.5% 195.6% -100.0% -29.9% -68.0% -70.1% -69.3% -100.0% 11.6% 35.8% -1.9% -15.6% 19.9% -11.9% 11.5% -20.6% -19.0%

Assembly Share % 1.0% 0.5% 0.5% 1.7% 0.5% 0.8% 0.3% 13.4% 0.8% 0.2% 1.0% 0.3% 0.3% 1.6% 0.4% 0.2% 0.1% 1.3% 0.2% 0.0% 1.9% 0.5% 0.5% 0.5% 0.7% 2.7% 1.1% 0.1% 0.2% 0.6% 0.1% 20.8% 0.6% 1.0% 1.3% 2.5% 0.5% 0.8% 0.1% 1.1% 0.3% 2.0% 5.8% 2.3% 0.5% 0.6% 0.0% 0.2% 0.0% 0.3% 0.3% 0.1% 0.1% 0.0% 0.1% 0.1% 0.1% 2.1% 1.3% 0.1% 0.7% 22.9% 0.5% 0.5% 0.3% 0.1% 0.4%

YOY Share Chg (-0.0) (-0.0) (-0.5) (-0.3) (-0.2) 0.6 0.5 0.1 (-0.0) (-1.5) (-1.0) (-0.5) 1.8 0.3 (-0.1) (-0.3) (-0.1) (-0.4) 0.3 0.2 (-0.1) (-0.5) (-0.0) 0.1 (-0.0) (-1.7) (-0.0) (-0.1) (-0.4) 1.7 (-0.1) (-0.2) 0.2 0.2 2.7 (-0.1) (-0.0) (-0.1) 0.1 0 0 0 0.5 0.1 0.5 0.3 0.3 0.1 0.2 0 1.1 (-0.0) (-0.2) (-0.4) (-0.2) (-0.6) (-0.2) (-0.0) (-0.0) (-0.1) 0.2 0.2 0 0.1 (-0.0) (-0.0) (-0.3) (-0.3) (-0.2) (-0.1) 0 0.2 (-0.0) (-0.2) 1.7 (-0.1) 0 (-0.1) 0.1 (-0.1)

Volume 30,702 17,473 13,229 45,952 6,022 27,688 12,242 463,615 14,189 12,613 37,132 15,306 14,124 52,133 14,435 24,070 4,984 42,113 8,996 8,853 57,187 17,318 19,533 14,346 19,755 86,528 38,198 4,406 7,680 21,504 4,608 660,781 14,800 31,736 39,455 78,048 16,064 20,915 2,851 32,966 9,305 62,736 187,148 75,286 14,684 24,977 263 4,844 1,000 6,998 8,329 3,359 3,425 1,816 6,400 7,245 4,734 1,397 69,939 44,332 1,330 24,277 759,959 18,757 17,911 10,338 2,857 12,810

YOY % Chg -100.0% -100.0% -23.3% -22.3% -24.5% 42.2% 30.1% 10.9% -100.0% -100.0% -100.0% 34.2% 4.7% -100.0% 40.0% 19.6% -5.1% 139.8% 15.0% 13.2% 14.8% -1.7% 27.1% 32.1% -100.0% -100.0% -100.0% -1.9% 355.3% 0.1% 7.3% 11.0% 5.4% -100.0% 16.0% -100.0% 196.5% 22.6% 17.4% 36.6% 23.5% 37.5% 83.9% 70.4% 32.5% 27.7% 20.5% 20.5% -1.0% -8.1% 16.2% 20.9% -31.4% 25.3% 1.9% -7.1% -78.6% 80.1% 80.9% 11.9% 210.8% -100.0% -27.6% -22.8% -14.5% -21.8% -16.2% 24.7% 44.4% 36.0% -0.6% 23.5% 10.5% 36.9% 12.0% -2.3%

Year to Date Assembly Share % 0.9% 0.5% 0.4% 1.4% 0.2% 0.8% 0.4% 14.1% 0.4% 0.4% 1.1% 0.5% 0.4% 1.6% 0.4% 0.7% 0.2% 1.3% 0.3% 0.3% 1.7% 0.5% 0.6% 0.4% 0.6% 2.6% 1.2% 0.1% 0.2% 0.7% 0.1% 20.1% 0.5% 1.0% 1.2% 2.4% 0.5% 0.6% 0.1% 1.0% 0.3% 1.9% 5.7% 2.3% 0.4% 0.8% 0.0% 0.1% 0.0% 0.2% 0.3% 0.1% 0.1% 0.1% 0.2% 0.2% 0.1% 0.0% 2.1% 1.4% 0.0% 0.7% 23.1% 0.6% 0.5% 0.3% 0.1% 0.4%

YOY Share Chg (-0.0) (-0.0) (-0.5) (-0.3) (-0.2) 0.2 0.2 0.1 (-0.0) (-1.4) (-1.0) (-0.4) 1.7 (-0.1) (-0.1) 0.1 0 (-0.1) 0.2 (-0.0) (-0.0) (-0.0) (-0.0) 0.1 0 (-1.8) (-0.0) (-0.1) (-0.1) 1.3 (-0.1) (-0.1) (-0.0) (-0.1) 2.6 (-0.0) (-0.0) (-0.1) 0.1 0 (-0.0) 0 0.8 0.1 0.3 0.4 0.3 0 0 0 1 (-0.1) (-0.6) (-0.1) 0 (-0.3) 0 (-0.0) (-0.0) (-0.1) 0.1 0.1 (-0.0) 0.1 (-0.0) (-0.0) (-0.1) (-0.1) (-0.1) (-0.0) 0.1 0.2 0 (-0.1) 1 (-0.0) 0.1 (-0.0) 0.1 (-0.1)

Volume 1,287 1,287 105,146 69,338 35,808 124,792 6,022 81,531 37,239 1,356,249 39,509 11,083 39,928 114,839 50,514 58,866 143,462 38,350 82,445 15,533 112,504 22,681 71,646 459 5,582 31,914 97,379 54,865 51,858 49,458 72,014 180,673 10,687 118,260 13,865 23,883 66,972 13,540 1,972,696 42,675 104,904 126,774 235,998 41,942 64,016 8,728 57,242 36,281 177,680 542,566 225,532 62,615 76,308 847 14,556 5,203 21,888 20,786 8,713 10,917 2,395 7,607 28,002 23,999 19,958 4,564 199,440 120,870 4,453 74,117 2,358,352 63,649 63,557 25,669 4,586 43,648

YOY % Chg 227.5% 227.5% 22.1% 13.8% 42.1% 26.3% 29.1% 4.5% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% 236.8% 144.1% 149.8% 296.9% 228.3% 180.7% 768.9% 162.5% 165.6% 262.7% 158.5% 184.6% 223.1% 12.7% 65.7% 51.8% 238.2% 602.4% 202.6% 176.9% 208.4% 214.0% 791.3% 31.7% -100.0% 198.6% 38.4% 34.9% 47.5% 37.3% 19.7% 47.6% 71.8% 38.2% 61.8% 35.3% 32.5% 45.7% 30.4% 18.7% 50.5% 10.4% 94.9% -100.0% 97.0% 13.8% 11.2% 25.8% 42.6% 44.5% 35.3% 73.8% 35.2% 27.4% 10.0% 12.3% 15.5% -100.0% 47.2% 100.4% 42.2% 2.9% 66.3% 69.0% 331.6% 31.9% 65.3%

Assembly Share % 0.0% 0.0% 1.0% 0.7% 0.4% 1.2% 0.1% 0.8% 0.4% 13.5% 0.4% 0.1% 0.4% 1.1% 0.5% 0.6% 1.4% 0.4% 0.8% 0.2% 1.1% 0.2% 0.7% 0.0% 0.1% 0.3% 1.0% 0.5% 0.5% 0.5% 0.7% 1.8% 0.1% 1.2% 0.1% 0.2% 0.7% 0.1% 19.6% 0.4% 1.0% 1.3% 2.3% 0.4% 0.6% 0.1% 0.6% 0.4% 1.8% 5.4% 2.2% 0.6% 0.8% 0.0% 0.1% 0.1% 0.2% 0.2% 0.1% 0.1% 0.0% 0.1% 0.3% 0.2% 0.2% 0.0% 2.0% 1.2% 0.0% 0.7% 23.4% 0.6% 0.6% 0.3% 0.0% 0.4%

YOY Share Chg 0 0 (-0.2) (-0.2) (-0.0) (-0.2) 0.1 (-0.1) (-0.2) (-1.0) (-0.8) (-0.2) (-0.1) (-0.0) (-4.7) (-0.2) (-0.1) (-0.1) (-0.4) (-0.1) (-0.2) (-0.5) (-0.2) (-0.3) (-0.1) (-0.2) (-0.1) (-1.2) (-0.0) (-0.0) (-0.1) (-0.3) (-0.2) (-0.1) (-0.2) (-0.2) (-0.0) (-0.0) 7.6 0.2 0 0.2 0.6 0.2 0.5 0.6 0.2 0.5 0.1 0.5 0.1 (-0.2) 0 0 0.2 0.8 0.3 0.2 0.3 0.4 1.8 0.1 (-0.1) (-0.1) 0.1 (-0.0) (-0.1) (-0.0) (-1.5) (-0.1) 0 0.2 (-0.2) 0 (-0.1) (-0.0) 0.6 (-0.0) (-0.2) (-1.3) 0 (-0.2) 0.2 (-0.0) 0 (-0.0) (-0.0) (-0.0) (-0.0) (-0.0) (-0.0) 0 (-0.0) (-0.0) (-0.1) (-0.1) (-0.0) (-0.1) (-0.0) 0.3 (-0.0) (-0.3) 2.6 0.1 0.4 (-0.0) 0 0

1 - 31 January 2011

N AMERICAN ASSEMBLY October 2010

Auto Monitor

Last 3 Months

Ownership Org/ Brand & Nameplate

Volume

YOY % Chg

Cadillac CTS Sport Wagon Cadillac DTS Cadillac Escalade Cadillac Escalade ESV Cadillac Escalade EXT Cadillac SRX Cadillac STS Cadillac XLR Chevrolet Avalanche Chevrolet Aveo Chevrolet C2 Chevrolet Camaro Chevrolet Captiva Chevrolet Cobalt Chevrolet Colorado Chevrolet Corvette Chevrolet Cruze Chevrolet Equinox Chevrolet Express Chevrolet HHR Chevrolet Impala Chevrolet Malibu Chevrolet Silverado Chevrolet Suburban Chevrolet Tahoe Chevrolet Traverse Chevrolet Volt GMC Acadia GMC Canyon GMC Savana GMC Sierra Pickups GMC Terrain GMC Yukon GMC Yukon XL Hummer H3 Hummer H3T Opel-Vauxhall GT Pontiac G5 Pontiac G6 Pontiac Solstice Pontiac Wave Saturn Aura Saturn Outlook Saturn SKY Saturn VUE Honda Motor Company (Japan) Acura CSX Acura MDX Acura RDX Acura TL Acura ZDX Honda Accord Honda Civic Honda Crosstour Honda CR-V Honda Element Honda Odyssey Honda Pilot Honda Ridgeline Hyundai Motor Company (S Korea) Hyundai Santa Fe Hyundai Sonata/i40 Kia Sorento Mitsubishi Motors Corp (Japan) Mitsubishi Eclipse Mitsubishi Endeavor Mitsubishi Galant Nissan Motor (Japan) Infiniti QX series Nissan Altima Nissan Armada Nissan Frontier Nissan Maxima Nissan Pathfinder Nissan Pickup Nissan Platina Nissan Quest Nissan Sentra Nissan Tiida Nissan Titan Nissan Tsuru Nissan Versa Nissan Xterra Renault Clio Suzuki Equator NUMMI (USA) Pontiac Vibe Toyota Corolla Toyota Tacoma Tesla Motors (USA) Tesla Roadster Toyota Motor Corporation (Japan) Lexus RX Series Toyota Avalon Toyota Camry Toyota Corolla Toyota Highlander Toyota Matrix Toyota RAV4 Toyota Sequoia Toyota Sienna Toyota Tacoma Toyota Tundra Toyota Venza Volkswagen (Germany) Volkswagen Bora Volkswagen Golf/Jetta Variant Volkswagen Jetta Volkswagen New Beetle Total Light Vehicle

362 1,921 1,388 1,206 241 7,543 323 2,279 4,636 3,234 6,210 3,488 3,025 616 18,708 18,067 6,333 5,596 11,589 21,172 42,587 5,648 9,671 12,597 8,052 1,046 2,106 19,252 8,585 4,231 3,670 111,012 420 5,220 1,635 3,124 120 25,912 24,771 1,199 23,401 1,741 11,774 10,735 960 42,476 6,722 25,489 10,265 2,866 363 874 1,629 97,599 24,933 2,984 5,158 6,460 3,261 3,046 15,873 7,177 1,929 7,356 16,748 2,554 120 64 64 114,249 6,606 2,521 20,797 16,749 8,511 1,666 14,822 2,785 12,293 12,637 10,462 4,400 43,843 270 13,073 30,500 1,111,660

-51.7% -21.8% -20.4% 77.4% -7.7% 53.4% 59.1% -4.3% 5.7% -29.0% -40.0% 20.2% -100.0% -32.6% -25.9% 27.7% -39.1% -20.1% -6.4% 69.0% 28.0% 0.9% -24.2% -4.2% -41.8% 71.1% 103.7% 22.7% 102.4% -100.0% -100.0% -100.0% -100.0% 0.1% 133.3% 3.6% 22.4% -31.4% -8.9% -13.6% 67.2% 11.3% 26.4% 28.4% 19.0% -30.4% 88.7% -32.7% 103.5% 13.5% 65.0% 130.6% -15.4% 13.9% -100.0% -7.3% 70.1% 82.6% -1.3% 1.5% 42.5% 24.3% 76.3% -10.0% 19.1% 22.9% 10.2% -100.0% -20.0% -100.0% -100.0% -100.0% 8.5% 8.5% 1.9% -10.6% -32.6% -37.0% 0.9% 64.8% -52.4% 88.4% 62.0% 18.2% 163.4% 2.4% -43.3% 48.3% -89.7% 83.5% 83.4% -100.0% 10.8%

Assembly Share % 0.0% 0.2% 0.1% 0.1% 0.0% 0.7% 0.0% 0.2% 0.4% 0.3% 0.6% 0.3% 0.3% 0.1% 1.7% 1.6% 0.6% 0.5% 1.0% 1.9% 3.8% 0.5% 0.9% 1.1% 0.7% 0.1% 0.2% 1.7% 0.8% 0.4% 0.3% 10.0% 0.0% 0.5% 0.1% 0.3% 0.0% 2.3% 2.2% 0.1% 2.1% 0.2% 1.1% 1.0% 0.1% 3.8% 0.6% 2.3% 0.9% 0.3% 0.0% 0.1% 0.1% 8.8% 2.2% 0.3% 0.5% 0.6% 0.3% 0.3% 1.4% 0.6% 0.2% 0.7% 1.5% 0.2% 0.0% 0.0% 0.0% 10.3% 0.6% 0.2% 1.9% 1.5% 0.8% 0.1% 1.3% 0.3% 1.1% 1.1% 0.9% 0.4% 3.9% 0.0% 1.2% 2.7% 100.0%

YOY Share Chg (-0.0) (-0.1) (-0.0) 0 (-0.0) 0.2 0 (-0.0) (-0.0) (-0.2) (-0.5) 0 (-1.1) (-0.2) (-0.0) 1.7 1.6 0.1 (-0.4) (-0.4) (-0.4) 1.3 0.1 (-0.1) (-0.5) (-0.1) (-0.1) 0.1 0.8 0.8 0 0.1 (-0.0) (-0.0) (-0.7) (-0.0) (-1.1) 0 (-0.0) 0 (-0.2) 0 (-0.5) (-0.6) 0 0 0 0.1 0.1 (-0.1) 1.6 (-0.4) 1 0.9 0 0 0 (-0.0) 0.2 (-0.1) (-0.4) 0.1 0.2 (-0.1) (-0.0) 0.1 0.2 0.2 (-0.0) 0 0.1 (-0.0) (-0.0) (-0.0) (-3.5) (-2.4) (-1.1) (-0.0) (-0.0) (-0.9) (-0.1) (-0.1) (-1.4) (-0.1) 0.3 (-0.2) 0.5 0.1 0.1 0.7 (-0.1) (-0.4) 1 (-0.2) 0.5 1.1 (-0.3) -

Volume 1,143 5,995 6,240 4,712 765 22,133 1,372 8,622 14,305 10,328 20,081 8,493 9,603 3,369 26,762 51,712 19,420 20,856 41,653 67,385 128,177 15,070 28,207 40,445 24,012 3,288 6,089 60,008 23,908 13,075 10,058 336,178 420 17,644 5,238 9,804 180 77,690 78,836 4,812 69,624 4,378 30,558 32,135 4,859 118,301 6,917 76,824 34,560 9,528 1,342 2,246 5,940 276,579 76,146 7,914 15,361 19,891 9,131 8,780 39,631 18,935 8,082 20,119 44,185 7,904 500 196 196 357,384 20,873 9,493 69,016 50,584 25,844 7,773 45,815 8,317 37,976 37,163 29,705 14,825 116,296 1,768 32,045 76,464 6,019 3,283,608

YOY % Chg -25.8% -5.2% 78.7% 203.8% 46.0% 74.7% 73.2% 57.2% 62.6% -4.0% -34.2% 18.2% -100.0% -4.4% 22.1% 42.0% 39.2% -5.9% 4.5% 21.8% 13.1% 15.8% -8.6% 15.0% -0.5% 79.4% 37.2% 56.2% 124.3% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% 7.2% 97.2% 53.9% 33.9% 15.1% -14.3% -11.0% 524.9% 18.0% 36.3% 27.6% 65.3% 24.6% 88.5% -77.9% 144.5% 26.0% 189.8% 43.1% 7.4% 26.1% -100.0% 29.8% 53.6% 70.2% 8.7% 1.4% 64.1% 14.5% 87.8% 18.1% 15.8% 30.9% 10.4% -100.0% -41.2% -100.0% -100.0% -100.0% -100.0% 12.6% 12.6% 21.3% -0.4% 1.3% -19.1% 18.3% 387.8% -27.4% 100.1% 45.9% 33.9% 197.3% 6.2% -35.1% 39.2% -67.2% 53.2% 54.9% -23.7% 18.4%

153

Year to Date Assembly Share % 0.0% 0.2% 0.2% 0.1% 0.0% 0.7% 0.0% 0.3% 0.4% 0.3% 0.6% 0.3% 0.3% 0.1% 0.8% 1.6% 0.6% 0.6% 1.3% 2.1% 3.9% 0.5% 0.9% 1.2% 0.7% 0.1% 0.2% 1.8% 0.7% 0.4% 0.3% 10.2% 0.0% 0.5% 0.2% 0.3% 0.0% 2.4% 2.4% 0.1% 2.1% 0.1% 0.9% 1.0% 0.1% 3.6% 0.2% 2.3% 1.1% 0.3% 0.0% 0.1% 0.2% 8.4% 2.3% 0.2% 0.5% 0.6% 0.3% 0.3% 1.2% 0.6% 0.2% 0.6% 1.3% 0.2% 0.0% 0.0% 0.0% 10.9% 0.6% 0.3% 2.1% 1.5% 0.8% 0.2% 1.4% 0.3% 1.2% 1.1% 0.9% 0.5% 3.5% 0.1% 1.0% 2.3% 0.2% 100.0%

YOY Share Chg (-0.0) (-0.0) 0.1 0.1 0 0.2 0 0.1 0.1 (-0.1) (-0.5) (-0.0) (-1.0) (-0.1) 0 0.8 1.6 0.1 0.1 (-0.3) (-0.3) 0.1 (-0.0) (-0.0) (-0.4) (-0.0) (-0.0) 0.1 0.2 0.7 0.1 0.1 (-0.0) (-0.0) (-0.1) (-0.7) (-0.0) (-0.0) (-1.1) 0 0.1 0 (-0.0) 0 (-0.9) (-0.8) 0.1 (-0.0) 0 0.1 0.3 0 1.3 (-0.9) 1.2 1.1 0 0 0 (-0.0) 0.5 (-0.1) 0.2 0.1 0.1 (-0.1) (-0.0) 0.1 (-0.0) 0.2 (-0.0) (-0.0) 0.1 (-0.0) (-0.0) (-0.0) (-3.4) (-0.1) (-2.2) (-1.1) (-0.0) (-0.0) 0.3 (-0.1) (-0.0) (-1.0) (-0.0) 0.6 (-0.1) 0.6 0 0.1 0.7 (-0.1) (-0.4) 0.5 (-0.1) 0.2 0.5 (-0.1) -

Volume 2,920 18,140 20,573 11,023 2,349 64,096 4,136 24,048 46,817 44,729 81,790 25,331 91,796 29,180 13,879 27,470 142,478 58,114 62,269 147,792 201,943 384,253 49,083 88,296 103,972 68,041 10,679 19,101 174,117 60,307 42,193 29,431 1,183 321 2,507 2,886 1,090,941 1,740 55,407 16,846 30,892 4,640 250,265 259,012 30,438 210,360 13,737 98,762 100,823 18,019 367,317 68,998 193,393 104,926 25,181 5,793 5,400 13,988 838,326 3,136 234,273 21,293 44,157 61,537 24,032 24,014 118,408 56,604 24,924 62,061 140,215 22,312 1,360 90,813 63,318 27,495 652 652 1,070,211 69,627 34,570 234,794 157,784 69,875 31,401 122,704 20,900 110,187 71,356 91,880 55,133 352,527 12,089 89,245 211,106 40,087 10,072,190

YOY % Chg 89.6% 72.8% 101.5% 158.2% 65.9% 405.8% 60.0% -100.0% 59.7% 92.5% 100.1% 30.5% 54.3% 67.8% 35.0% 107.4% 37.3% 54.3% 33.9% 48.5% 41.9% 49.6% 68.9% 23.9% 83.2% 54.8% 66.6% 52.2% 75.8% 117.8% -54.7% -79.4% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -49.6% -100.0% -48.4% 29.7% 26.1% 107.6% 134.5% 50.3% 6.0% 2.5% 3410.7% 36.7% 19.3% 47.8% 104.4% 31.4% 121.1% -5.6% 107.9% 79.7% 123.1% 97.4% 61.2% 46.9% -44.4% 44.2% 153.6% 89.1% 48.5% 28.9% 104.6% -100.0% -100.0% 11.4% 155.7% 102.4% 10.8% 89.2% 37.4% -100.0% -49.5% -56.5% -100.0% -51.9% -43.4% 13.0% 13.0% 50.2% 35.0% 49.7% 24.6% 46.8% 1218.9% -2.5% 91.1% 46.7% 86.0% 104.6% 31.5% -11.3% 40.6% -26.0% 2.1% 74.2% 55.0% 47.6%

Assembly Share % 0.0% 0.2% 0.2% 0.1% 0.0% 0.6% 0.0% 0.2% 0.5% 0.4% 0.8% 0.3% 0.9% 0.3% 0.1% 0.3% 1.4% 0.6% 0.6% 1.5% 2.0% 3.8% 0.5% 0.9% 1.0% 0.7% 0.1% 0.2% 1.7% 0.6% 0.4% 0.3% 0.0% 0.0% 0.0% 0.0% 10.8% 0.0% 0.6% 0.2% 0.3% 0.0% 2.5% 2.6% 0.3% 2.1% 0.1% 1.0% 1.0% 0.2% 3.6% 0.7% 1.9% 1.0% 0.3% 0.1% 0.1% 0.1% 8.3% 0.0% 2.3% 0.2% 0.4% 0.6% 0.2% 0.2% 1.2% 0.6% 0.2% 0.6% 1.4% 0.2% 0.0% 0.9% 0.6% 0.3% 0.0% 0.0% 10.6% 0.7% 0.3% 2.3% 1.6% 0.7% 0.3% 1.2% 0.2% 1.1% 0.7% 0.9% 0.5% 3.5% 0.1% 0.9% 2.1% 0.4% 100.0%

YOY Share Chg 0 0 0.1 0 0 0.5 0 (-0.0) 0 0.1 0.1 (-0.1) 0 0.1 (-0.0) 0 0.3 1.4 (-0.0) 0 (-0.2) 0 (-0.2) 0 0.1 (-0.2) 0.1 0 0 0.1 0.6 0.1 0.1 (-0.0) (-0.0) (-0.0) (-0.1) (-0.7) (-0.0) (-0.0) (-0.1) (-0.0) (-0.0) (-0.1) (-1.5) (-0.0) 0.2 0.1 0 0 (-1.0) (-1.1) 0.3 (-0.2) (-0.0) 0 0.3 (-0.0) 1.2 (-0.4) 0.6 1 0 0 0 0 (-0.0) (-0.1) (-0.1) 0.1 0.1 0 (-0.0) 0.1 (-0.0) (-0.1) (-0.4) 0.2 0.1 (-0.2) 0.3 (-0.0) (-0.0) (-0.0) (-2.2) (-0.4) (-1.3) (-0.4) (-0.0) (-0.0) 0.2 (-0.1) 0 (-0.4) (-0.0) 0.6 (-0.2) 0.3 (-0.0) 0.2 0.2 (-0.1) (-0.4) (-0.2) (-0.1) (-0.4) 0.3 0 -

154

Auto Monitor

1 - 31 January 2011

CORPORATE

Lotus range extender engine concept Contd. from P70 requirement that this be achieved when operating at stoichiometric conditions on 95RON ULG and be knock-free at maximum power. The adoption of the monoblock configuration was a major contributor to achieving this, as will be discussed later.

Two-valves-per-cylinder and a belt-driven single overhead camshaft (SOHC) were selected, driven by cost and friction considerations. Pushrod valve operation was considered in the interests of package size but an assessment concluded that, in a singlebank engine, a simple SOHC confi guration would be cheaper with less friction (and only slight demerit in height).

Port fuel injection was also chosen for similar reasons as well as good mixture preparation.

The combustion chamber itself is a modified bathtub with slant squish and this and the small bore (and consequently undersquare dimensions of 75mm x 90mm) are all part of a package of measures to mitigate knock. The small bore is made possible by the low maximum power output. This keeps the valve sizes small and consequently the gas velocities high to the benefit of air motion in the combustion chamber; small valves also permit the spark plug to be positioned as close as is practicable to the centre of the combustion chamber in the interests of ensuring a short fl ame path. Extensive use was made of CFD in order to achieve the turbulence target set in order to ensure fast combustion and hence extend the knock limit.

The results of this rigour are such that 10.5 bar BMEP can already

be achieved at 3,500 rpm with stoichiometric fuelling at 10:1 compression ratio, thus providing excellent fuel economy while allowing simple and robust exhaust gas aftertreatment.

In addition to 95 RON ULG, the engine can also operate on ethanol and methanol and any mixture of the three.

The achievement of the ambitious combustion targets was aided greatly by the adoption of monoblock construction, combining the cylinder head and block in a single casting, thus eliminating cylinder head bolts and head gasket. It is accepted that the resulting monoblock casting is complex but overall there is a slight reduction in the number of casting cores compared to a conventional approach and a significant reduction in the total number of machining operations. Honing a blind bore and machining the valve seats are not significant issues.

While a significant number of components are therefore eliminated from the engine (at the expense of a slightly more complicated main casting), an important result is that greater freedom in port configuration is also afforded. Indeed, the inlet port occupies an area which would have had a cylinder head bolt passing through it in a conventional architecture. The vertical valve confi guration of the two-valve-per-cylinder layout in turn permits the use of a monoblock because it allows simple machining of the valve seats. On the exhaust side, the absence of head bolts permitted the ready adoption of an extremely compact integrated exhaust manifold (IEM) which,

together with the three-cylinder confi guration, helps to extend the knock limit by ensuring that any re-ingested residuals are cooled to a greater extent than in a separate-manifold engine.

The IEM also accelerates catalyst light-off while reducing mass and cost.

Achieving Performance and Efficiency The results from the sign off test proved incredibly successful. SFC is shown as a function of engine power, which is the normal way of presenting such data in power generation; since the engine is intended to produce electrical power, this convention has been adopted here. (It should be stressed that this data is based on brake power and not on electrical power) In this initial ‘as-tested’ form the engine almost reaches the original 38 kW target and that the fuel consumption is already very good. The reported maximum power point of 36.8kW in Figure 5 corresponds to 3500rpm, meaning that the engine is generating 100Nm at this point and operating at 10.5bar BMEP, just at the knock limit on the 95RON fuel being used. For a two valve combustion system operating without power enrichment (i.e. at Lambda = 1) this is considered to be very good indeed, and coupled with the fact that 95 RON gasoline was being used the maximum power BSFC of 241 g/kWh is outstanding, representing as it does 35 percent thermal efficiency. It should be noted that while direct-injection spark-ignition engines with turbocharging and dual cam phasing devices can deliver this

level of efficiency at or near to peak torque, they cannot do so at their maximum power point, where what is believed to be the best currently reported for this condition is 270 g/kWh (without cooled EGR).

The friction MEP is at a low level of approximately 0.6 bar throughout the power curve, meaning that the aim of realising very low friction has been achieved. The mechanica l efficiency at full load is 90-92 percent, which is extremely good for a naturally-aspirated fourstroke engine.

Since the engine becomes steadily more knock limited below maximum power there appears to be some opportunity to balance some throttling loss against combustion phasing in future calibration work. As part of this undertaking it is planned to fully map the engine as though it were a conventional unit, and so to be able to determine the optimum locus of operation when any given generator efficiency map is applied. The proposed UQM generator for the initial application of the engine has a claimed efficiency of 93 percent at 37 kW and 3,500 rpm, which implies that the electrical SFC of the combined enginegenerator unit at this point will be just over 259 g/kWh (with just over 32.5 percent thermal efficiency). Interestingly, this is still better than conventional sparkignition engines can achieve delivering maximum power into a mechanical transmission (although it is accepted that the Lotus Range Extender engine has not been developed to deliver such high specific power at high engine speeds).

Variety of Applications Lotus has created a dedicated range extender engine for plug-in hybrid electric vehicles, designed to automotive practices and with automotive legislation in mind. The engine has been protected to operate on gasoline, ethanol or methanol, or any ternary blend of the three.

Cost and mass have been addressed by adopting monoblock construction with an integrated exhaust manifold, itself permitted by the adoption of a two valve- per-cylinder combustion system with vertical valves. The dry engine mass is 60 kg and performance is on track to meet the 38 kW target with a BSFC of 241 g/kWh. Both of these will improve if the balance shaft is removed.

The combustion system was developed to have a good knock limit, achieved through the adoption of high turbulence, small bore, near-centra lly-mounted spark plug and slant-squish combustion chamber geometry.

As a consequence the engine operates knock-free at maximum power when operating on 95 RON fuel.

Low friction has been achieved with a high mechanical efficiency of 92 percent. The monoblock architecture would readily suit other engine types; in particular, the diesel engine, with its premium of cylinder head space and challenge of head gasket durability, would seem to be an obvious candidate for the approach.

(The author is Chief Engineer of Powertrain Research, Lotus Engineering. Comments can be sent to JLamb@lotuscars.com

Innovative use of chassis dynamometers...

Contd. from P74

‘bump less’ transition between control modes and stable control after the transition has been completed. This then enables successive shift manoeuvres to be run every 12 seconds and load change cycles to be run every 15 seconds. This results in a total test time between 10 and 70 hours of unmanned operation, independent of the calibration task. A DoE test plan is created then run in automatic mode on the chassis dyno. A manual calibration is performed in local operating points, whereas the automated process follows a global approach, which includes not only the measured signals, but also the set values.

This global data set contains all pertinent information concerning driveability.

The vehicle is fi xed on the chassis dyno via a load cell with a very stiff clamp, since the longitudinal forces can only be measured by the load cell. This upgrade variation was used for the tests in this article. The possibility of using the acceleration signal directly from the chassis controller on the AVL-Zollner chassis dyno avoids extra mechanical systems and promises high dynamic response and measurement repeatability.

The layout and control of the chassis dyno are of paramount importance for the application.

A chassis dyno with high dynamic response is necessary for the reproduction of driveability test

manoeuvres.

In addition, if the requirements for emissions specification C100081T1 are fulfi lled, then the chassis dyno offers a wide field of application beyond driveability calibration: amongst other things emissions calibration, endurance testing or fuel consumption reduction testing, and at the same time cost efficient.

The force of the vehicle applied to the road surface (FxVehicle), the force of the road load simulation and the force derived from the mass simulation are calculated using the measured vehicle speed (v), acceleration (a) and force signals (Fx-LC) of the test bed motor. Using feed forward control of the forces from the road load simulation and the vehicle FXVehicle in combination with the control of all forces that act additively on the feed forward loop, it is possible to apply the necessary force FXDemand to the wheels via the AC motor within milliseconds. This type of control guarantees a fast and deterministic reaction by the test bed. For vehicles driven by two axles, symmetrical controllers on both axles maintain the calculated total force and identical speed of both rollers.

In order to compensate for inaccuracies of the simulation model and to reduce the angular difference between the rollers to below 0.2°, the system uses an overlying delta-s controller to

reduce differences between the roller speeds and positions (s1, s2). This guarantees a high synchronicity between the rollers for an arbitrary force distribution by the vehicle. In addition to the controllers described here, the AVL Zollner chassis dyno supports ‘bumpless’ transition between controller modes speed control and road load simulation providing a major pre-requisite for an effective automation of the system. The advantages of the electronic control are that it can be used in both development vehicles and those in series production – lower cost, shorter setup times and the required faster conversion of control signals than a robot – identical layout for both road and chassis dyno.

A BMW 530i with automatic transmission (AT), a front-wheel drive vehicle with automatic transmission and a FWD vehicle with DCT transmission were selected for the comparison tests of gear shift quality measurements. The measurement plan consisted of sets of 10 operating points defi ned by turbine speed against turbine torque (AT) and engine speed against engine torque (DCT), applied to gear shifts from 2nd to 3rd and from 3rd to 4th gear. A downshift from 3rd to 2nd was also analysed.

Each operating point was run with series production calibration and repeated five times.

The tip-in comparison uses

variations in driveability relevant set values with a grid-test plan (343 variations) in the road and on the chassis dyno – operating point 1500 rpm (engine), pedal step from 0-50 percent in 2nd gear – set point variation: pedal, fi lter constants for torque rise.

The set values for the „tip-in’ are split into those for the fast torque demand via spark advance (ignition path) in the form of fi lter constants and the slow torque demand via the accelerator pedal (air path). The model shape in Figure 7 is qualitatively very similar for both road and chassis dyno. The optimization leads to equivalent demand values and the difference in ratings is in the range of 0.5[-]. The pre-requisite for portability of optimisation results from the chassis dyno to the road environment is thus fulfi lled.

Usage in Driveability Calibration The anti-jerk function in the ECU is used to recognise and dampen undesirable scillations in speed in the powertrain. The overall rating for a ,tip-in’ results from the weighting of the detail ratings: jerks are weighted at 25 percent, a kick 20 percent and the response delay 15 percent. A high overall rating is achieved above all by low jerks and a low kick, which, from a driver’s perspective, corresponds to high driving comfort. Other detail ratings con-

tributed only 5-10 percent to the overall rating and were considered insignificant and therefore not modelled.

The main focus of the methodology lies in the automated data gathering process on a chassis dynamometer, the model-based approach and the inherent avoidance of multiple calibration loops. Since data is gathered at night and at weekends, a significant increase in chassis dyno productivity is achieved. The subsequent data evaluation and generation of all driveability calibration variants in the office environment makes it possible to simultaneously use vehicle prototypes for other calibration tasks.

(Dipl.-Ing. (FH) Rainer Vögl is Lead Engineer for Vehicle and Testbed Methodology at AVL List GmbH in Graz (Austria).

Dipl. Ing. Erik Bogner leads the Group for Driveability and Simulation at AVL List GmbH in Graz (Austria). The authors Dr Thomas Ebner is responsible for CAMEO Customer Projects at AVL List GmbH in Graz (Austria).

Dipl.-Ing. Tom Dein Dias Terra is Development Engineer for Vehicle and Testbed Methodology at AVL List GmbH in Graz (Austria).

Dipl.-Ing. Gianluca Vitale is Product Manager for Vehicle Calibration in the Business Unit Instrumentation at AVL List GmbH in Graz (Austria))

1 - 31 January 2010 2011

CLASSIFIEDS

Aftermarket Retail Sales & Service Dealer Network Spare Parts

Feel the pulse of the trade Auto Monitor Indiaâ&#x20AC;&#x2122;s No. 1 Magazine for Automotive News, Views & Analysis

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156

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1 - 31 January 2011

THE OTHER SIDE

Getting Personal

In Person

Vijay Krishan Mehta, Chairman and Managing Director, Clutch Auto

Vijay Krishan Mehta, 47, iss the Chairman and Managing Director ector of Clutch Auto. He is mechanical anical engineer from Punjab University ty from 1961 batch. He has won three e gold medals: best all rounder, topper er in mechanical engineering and topper in all branches of engineering at the university. He is the past President of Automotive Component Manufacturers Association of India and has been associated with ACMA in its decision making level for over 35 years in various capacities including member of its Executive Committee. He is also a National Council Member of Confederation of Indian Industry (CII) and the Chairman, Expert Panel on Recyclability, Core Group on Automotive Research, Government of India. He established Clutch Auto in the year 1971 for manufacture of automotive clutches. Clutch Auto became a public limited company in the year 1982 and continues to enjoy eminent position in the country in the field of manufacturing and export of clutches.

Clutch Auto is accredited with TS 16949 & QS9000/ ISO 9001 certificates by TUV of Germany.

If not in the auto industry, where would you be?

In company of learned people who can help me build my inner faculties and help me to be at peace with myself – Varanasi, Allahabad, Rishikesh are beckoning me.

What car do you drive? What do you dream of driving?

Any car with sufficient working space, low height & good bright reading light – Lancer or Honda Accord serve my needs.

Your most recent indulgence…

A full day to myself – at loose end.

• • • •

What are you currently reading?

13 local & 2 American newspapers, 6 US auto news channels - daily Local and American auto magazines Product & industry related publications Books on partition, undercurrents in China, Government policies and religious Lineage

What is Mr… doing when not talking auto?

• Collecting trade inputs & statistics for my archives.

• Trying to understand trends in global, Chinese & Indian Economies.

• Growth & contribution of the ‘man in the street’ Outdoor activity you would miss office for…

A call from my grand children or wife; or any emergency with staff, friends, family wherever I can make any meaningful contribution.

Where did you go for your last holiday?

Shirdi, Mumbai and short Holiday in Malaysia.

You get angry when…

There is negligence or abdication of responsibility, false statements, unreasonable & unjust demands or undue Pressure.

What is the one thing you would like to change about you?

Commercial options to be given more weightage over R & D – a balanced approach.

Best thing to have happened to you…

Respect & recognition in the exclusive field of clutch technology.

Illustration: Sachin Pandit

An experience I won’t forget…

Birth in British Jail (1941) As a year old child (with mother) in Lahore Central Jail’s women’s wing during Quit India Movement (Aug.1942). Had seen only two males – the jail superintendent & the jailor and the only animal – cat.

My notions- ‘Cow is a bigger cat & sewing machine is a black cat’ i.e. I was completely out of touch with the world. The British tyranny and torture and complete isolation left an indelible imprint on me not to surrender to injustice and stand up to conviction. The spirit of Satyagraha has dominated my life and defi nes my character.

This discipline has helped me to insulate myself in adversity, until when once prodded, I could spell j without stirring or twisting the Tongue.

Education on Scholarship I belonged to a poor family but honest & forthright. My engineering college expenses were ~ `150/-month, scholarships totaled `122/- my education was almost self sustained. Suddenly I got a news that my scholarship disbursement has been stopped by the Government presumably because my father was not ready to compromise on his political affi liation or principles. An innocent mistake in the college establishment, saved my educational career, which resulted in withdrawal of scholarship of Vijay Kumar and I continued to get scholarship support and won three gold medals including best all rounder of the University.

Business First year of my job with ESSO (1962-66) earned me ‘You are the apple of our eyes.’

Support & encouragement from ESSO management afforded me opportunities to negotiate several million dollars worth orders including with the Ministry of Defence (Post Chinese War) single handedly when I was around 23 years old.

My capital at start of business in 1966 – `9286.34 & a company car. Institutional marketing of auto components for four years helped me to generate cash for start of Clutch Auto, qualifying to small scale, medium scale and now a recognised standalone clutch manufacturer in the world.

1 - 31 January 2011

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Ashfa Corporation............................................................................................... +91-22-25107461 .....................................ashfa91@hotmail.com ............................................................... www.ashfacorp.com 9 .................... Assab Sripad Steels Ltd ....................................................................................... +91-44-24951980 ....................................chennai@assabsripad.com ........................................................ www.assabsripad.com 110 ................. Aum Dacro Coatings ........................................................................................... +91-124-4082764 ....................................aumdacro@vsnl.net................................................................... www.aumdacro.com 89 .................. Ballkings ............................................................................................................. +91-161-2534501 .....................................ballkings@ballkings.com 100................. Batliboi Ltd ......................................................................................................... +91-22-66378200 ....................................info@batliboi.com ..................................................................... www.batliboi.com 7 .................... Beda Flow Systems Pvt Ltd ................................................................................. +91-120-4329990 ....................................info@bedaflow.com ................................................................... www.bedaflow.com 54 .................. Bergen Systems Pvt Ltd....................................................................................... +91-124-4002888 ....................................bergeng@vsnl.net ...................................................................... www.bergenindia.com 87 .................. Beru Diesel Start Systems Pvt Ltd. ...................................................................... +91-20-24226300 ....................................info@beruindia.com .................................................................. www.beruindia.com 23 .................. Birla Tyres ........................................................................................................... +91-33-22814717.....................................advt@birlatyre.com ................................................................... www.birlatyre.com 108................. BNP Paribas Group ............................................................................................. +91-22-67087700 ........................................................................................................................................ www.arval.in 2 .................... Bright Autoplast Pvt. Ltd. ................................................................................... +91-22-26124920 .....................................raju_g@brightautoplast.com .................................................... www.brightautoplast.com 125................. Camozzi India Pvt Ltd. ........................................................................................ +91-120-4055252 ....................................info@camozzi-india.com ........................................................... www.camozzi.com 11 ................... Capgemini Consultancy India P Ltd .......................................................................................................................................................................................................................................... www.in.capgemini.com 31................... Carl Zeiss India Pvt Ltd. ...................................................................................... +91-80-43438102 ....................................imtndia@zeiss.co.in ................................................................... www.zeiss.co.in 117 ................. Cears Dies And Moulds Pvt Ltd. .......................................................................... +91-253-6614513.....................................ajay@nashrobotics.com............................................................. www.nashrobotics.com 110 ................. Chamunda Equipments ...................................................................................... +91-79-27522437 ....................................clamp@chamundaequip.com ................................................... www.chamundaequip.com 71................... Chaphekar Engineering Pvt Ltd. ......................................................................... +91-20-66524877 ....................................sachin@chaphekarengg.com .................................................... www.chaphekarengg.com 64 .................. Coatec India ........................................................................................................ +91-160-2648700 ....................................info@coatecindia.com ............................................................... www.coatecindia.com 70................... Cobra Carbide ..................................................................................................... +91-8110-415003 ....................................sales@cobracarbide.com........................................................... www.cobracarbide.com 66 .................. Continental Automotive Components Itd........................................................... +91-80-66115645 ....................................deepa.nair@continental-corporation.com ............................... www.conti-online.com 99 .................. DJR Delux Bearings Limited ................................................................................ +91-22-24926660 ....................................delux.info@deluxmail.com ....................................................... www.deluxbearings.com 16................... Dynascan Inspection Systems Co ........................................................................ +91-80-41102747 ....................................dynascan@vsnl.com .................................................................. www.dynascan.info 72,73 ............. Electro Pneumatics & Hydraulics (India) Pvt Ltd ................................................ +91-2135-667500 ....................................epchakan@electropneumatics.com .......................................... www.electropneumatics.com 107................. Electronica Hitech Engineering Pvt Ltd.............................................................. +91-20-30435400 ....................................hitech@electronicahitech.com ................................................. www.electronicahitech.com 120................. EloFIC Industries ................................................................................................. +91-129-4281000 ....................................pawans@eloFIC.com .................................................................. www.eloFIC.com 40 .................. Emag India Private Limited ................................................................................ +91-80-42544400 ...................................info@india.emag.com ............................................................... www.emag.com 13................... Endurance Technologies Pvt Ltd ........................................................................ +91-240-2551700......................................................................................................................................... www.endurancegroup.com 6,106,114,143 . Engineering Expo ................................................................................................ +91-9920401226 ......................................................................................................................................... www.engg-expo.com 69................... Eschmann Texture India Pvt. Ltd........................................................................ +91-250-2481735 ....................................info@eschmanntexturesindia.org ............................................. www.eschmanntextures.de 33................... Etas Automotive India Pvt Ltd. ........................................................................... +91-80-41916581 ....................................sales.in@etas.com ..................................................................... www.etas.com 86 .................. Exel Technologies (India) Pvt Ltd. ....................................................................... +91-22-25188344 ....................................s.vinothkumar@exel-in.com...................................................... www.kremlinrexn-sames.com 67 .................. Ferromatik Milacron India Ltd............................................................................ +91-79-25890081 ....................................salesfmi@milacron.com ............................................................ www.milacronindia.com 20................... Forging Machinery Manufacturing Co ................................................................ +91-161-5011755 ......................................................................................................................................... www.nkhhammers.com BC .................. G S Auto International Ltd .................................................................................. +91-161-2511001 ......................................................................................................................................... www.gsgroupindia.com 93................... G W Precision Tools India Pvt Ltd. ...................................................................... +91-80-40431252 ....................................info@gwindia.in ........................................................................ www.gwindia.in 36................... Global Sleeve Solutions ...................................................................................... +91-9501040477 .....................................info@globalsleeves.com ............................................................ www.globalsleeves.com 101................. Godrej & Boyce Mfg. Co. Ltd. .............................................................................. +91-22-67962757 ....................................menon@godrej.com .................................................................. www.godrejtoolings.com 84 .................. Goodie Enterprises.............................................................................................. +91-11-41613643 .....................................goodie@goodiesons.com........................................................... www.goodiesons.com 139 ................. Grauer & Weil(India)Ltd. ..................................................................................... +91-22-66993000 ....................................hq@growel.com ......................................................................... www.growel.com 63 .................. Greaves Cotton Limited. ..................................................................................... +91-22-24397575.....................................rrao@greavesmail.com .............................................................. www.greavescotton.com 46 .................. Grind Master Machines Pvt Ltd........................................................................... +91-9822029958 .....................................sales@grindmaster.co.in............................................................ www.grindmaster.co.in 82,83 ............. Grundfos Pumps India Pvt Ltd............................................................................ +91-44-24966800....................................salesindia@grundfos.com ......................................................... www.grundfos.in 98 .................. Gudel India Pvt Ltd. ............................................................................................ +91-20-25459531 ....................................info@in.gudel.com .................................................................... www.gudel.com BIC ................. Guhring India Private Limited ............................................................................ +91-80-40322500 ...................................info@guhring.in ........................................................................ www.guhring.in 39................... Haas Automation India Pvt Ltd. ......................................................................... +91-22-27742181.....................................indiasales@haasCNC.com .......................................................... www.haasCNC.com 19................... Happy Forging Ltd .............................................................................................. +91-161-2510421 .....................................mail@happyforgingsltd.com ..................................................... www.happyforgingsltd.com 10................... Hero Exports ....................................................................................................... +91-9818646093 .....................................agarg@heroelectric.in ............................................................... www.heroelectric.in 146................. HiTech Manufacturing Show............................................................................... +91-9820373804 .....................................hitech@infomedia18.in 47................... IAC International Automotive India Pvt Ltd. ...................................................... +91-20-66538500 95................... ICAT ..................................................................................................................... +91-124-4586111 .....................................pawan.thakur@icat.in ............................................................... www.icat.in 149 ................. Indian Polyurethane Association ....................................................................... +91-44-24995923 ....................................admin@pu-india.org ................................................................. www.pu-india.org 42................... Indus Environmental Services Pvt Ltd. ............................................................... +91-11-26271433 .....................................envirotrends@indusenviro.com ................................................ www.envirotrends.net 68 .................. Ion Exchange (India) Ltd. .................................................................................... +91-22-30472049 ....................................suvendu.senapati@ionexchange.co.in ...................................... www.ionindia.com 42................... ISK Bearing Industries ........................................................................................ +91-2827-287956 ....................................hub@iskbearings.com ............................................................... www.iskbearings.com 37................... ISMT Limited ....................................................................................................... +91-20-66024901 ....................................sachin.joshi@ismt.co.in ............................................................. www.ismt.com 155 ................. Jay Instruments & Systems Pvt Ltd ..................................................................... +91-836-2352678 ....................................sales@jayinst.com ..................................................................... www.jayinst.com 115 ................. JCB India Ltd ....................................................................................................... +91-129-4299000 ....................................rohit.verma@jcb.com ................................................................ www.jcb.com 60 .................. JK Tyre & Industries Ltd. ..................................................................................... +91-11-23311112 .....................................anilgupta@jkmail.com .............................................................. www.jktyre.com 53.133 ............ Jyoti CNC Automation Pvt Ltd. ............................................................................ +91-2827-287081 ....................................info@jyoti.co.in.......................................................................... www.jyoti.co.in 4 .................... Kamal Envirotech................................................................................................ +91-124-4367305 ....................................enquiry@giaatech.com .............................................................. www.giaatech.com 159 ................. Klipco Pvt Ltd...................................................................................................... +91-22-28684221 ........................................................................................................................................ www.klipcohoseclamps.com 121................. Kuka Robotics (India) Pvt. Ltd. ........................................................................... +91-124-4635774 ....................................pradeep@kuka.in ...................................................................... www.kuka.in 141 ................. Kundan Industries Ltd ........................................................................................ +91-250-2455394 ....................................fasteners@kundan.com ............................................................. www.kundan.com 127................. Lanxess India Pvt.Ltd. ......................................................................................... +91-22-21729200 ....................................www.lanxess.in 61................... Larsen & Tourbo Ltd. .......................................................................................... +91-22-67051093 ....................................smh-inp@powai.ltindia.com ..................................................... www.larsentoubro.com 28 .................. Lien Chieh Machinery Co., Ltd. ........................................................................... +886-2-2783-8664...................................jack_chuang@lienchieh.com .................................................... www.lienchieh.com 77 .................. Lumax Auto Technolgies Limited ....................................................................... +91-11-28111777 .....................................latlmkt@airtelmail.com ............................................................ www.lumaxautotech.com 5 .................... M And M Auto Indus Ltd ..................................................................................... +91-124-4763200 ....................................corporate@mandmsprings.com ................................................ www.mandmsprings.com 147 ................. M+V Marketing & Sales Pvt. Ltd. ........................................................................ +91-124-4121600 ....................................info@wagner-group.in............................................................... www.wagner-group.in 55................... MAG Industrial Automation Systems .................................................................. +91-80-40677000 ...................................sales-India@mag-ias.in.............................................................. www.mag-ias.in 14................... Mahr Metrology India (P) Ltd. ............................................................................. +91-44-42170531 ....................................r.ganesan@mahr.com ................................................................ www.mahr.com 123................. Marks Pryor Marketing Technology .................................................................... +91-20-66743300 ....................................info@markspryor.com ............................................................... www.markspryor.com 21................... Matsui Technologies India Ltd. ........................................................................... +91-120-4243862 ....................................sales@matsuiindia.com ............................................................. www.matsuiindia.com 129................. Metzeler Automotive Profiles India .................................................................... +91-120-4181710.....................................ravinder.gaur@maps-in-com..................................................... www.cooperstandard.com 65................... Micromatic Machine Tools .................................................................................. +91-80-41492285 ....................................mmtblr@acemicromatic.com .................................................... www.acemicromatic.com 16................... Mipox .................................................................................................................. +91-80-65830898 ...................................rag-rao@mipox.co.jp ................................................................. www.mipoxindia.com 26................... Misumi India Pvt Ltd........................................................................................... +91-20-66470000....................................sales@misumi.co.in ................................................................... www.misumi.co.in 112 ................. Modern Machine Tools-Aerospace Special ......................................................... +91-22-30034651 17................... Moog Motion Controls Pvt Ltd ............................................................................ +91-80-40576666....................................ashashank@moog.com .............................................................. www.moog.com/industrial 155 ................. N K Forging & Rolling Industries ........................................................................ +91-161-2223666 ....................................info@forginghammer.com ........................................................ www.nkhhammer.com 132 ................. Napino Auto & Electronics Ltd. .......................................................................... +91-124-2290050 ....................................info@napino.com ...................................................................... www.napino.com 45................... National Engineering Industries Ltd................................................................... +91-141-2223221 ....................................neisales@neibearing.com ......................................................... www.neibearing.com 30 .................. Nextech Engineering .......................................................................................... +91-2827-296051 ....................................info@nextechengg.com ............................................................. www.nextechengg.com 59................... Ningbo Elite Mold Manufacture Co Ltd. ............................................................. +86-574-8614-8158 .................................tracy@cmmould.com.cn............................................................ www.elitemould.cc 34 .................. Ningbo Junling Mould Technology Co., Ltd. ....................................................... +86-574-8610-3666 .................................scb@junlingmould.com ............................................................. www.junlingmould.com 46 .................. Norka Instruments (Shanghai) Co., Ltd............................................................... +86-21-5032-7099 ...................................xuming@afa-tech.com.cn .......................................................... www.afa-tech.com.cn 122................. Oetiker India Pvt Ltd........................................................................................... +91-2192-250107.....................................akeswani@oetiker.com .............................................................. www.oetiker.com COC ................ Padmini VNA Mechatronics Pvt. Ltd................................................................... +91-124-3207398 ....................................sales@padminiengg.com........................................................... www.padminivna.com 111 ................. Patvin Engineering (P) Ltd. ................................................................................. +91-22-27780310 ....................................patvin@patvin.co.in .................................................................. www.patvin.co.in 113 ................. Pepperl+Fuchs(India) Pvt Ltd. ............................................................................ +91-80-28378030 ....................................info@in.pepperl-fuchs.com ....................................................... www.pepperl-fuchs.com 41................... Piaggio Vehicles Pvt Ltd...................................................................................... +91-22-66013150 ....................................info@piaggio.co.in ..................................................................... www.piaggio.co.in 48 .................. Prakash Engineers .............................................................................................. +91-278-2438241.....................................sales@prakashmachines.com ................................................... www.prakashmachines.com 51................... Rane Holdings Limited ....................................................................................... +91-44-28112472 ....................................s.vinoth@rane.co.in ................................................................... www.rane.co.in 80 .................. Remsons Industries Ltd. ..................................................................................... +91-22-8684452 ......................................rahul@remsons.com.................................................................. www.remsons.com 155 ................. Riat Brothers (India)............................................................................................ +91-161-2530805.....................................riatgrinders@gmail.com ............................................................ www.riatgrinders.com 90 .................. Rohan Standox Autolack ..................................................................................... +91-22-65803331 ....................................sales@spraytec.net .................................................................... www.spraytec.net 161 ................. Ronuk Metafin Pvt Ltd ........................................................................................ +91-22-24936261.....................................ronukgroup@ronukgroup.com ................................................. www.ronuk-ronuplate.com 62 .................. Roots Industries India Limited. .......................................................................... +91-422-4235300 ....................................srm@roots.co.in......................................................................... www.rootsindia.com 119 ................. Sandeep Engineers ............................................................................................. +91-80-23390076 ....................................sebvs@vsnl.net .......................................................................... www.witteasia.com 56 .................. Sarabsukh Machine Tools ................................................................................... +91-1871-223893 ....................................sarabsukhbatala@yahoo.co.in .................................................. www.sarabsukhmachines.com 155 ................. Sarveshwari Technologies Ltd ............................................................................ +91-11-27023750.....................................info@sarveshwari.com .............................................................. www.@sarveshwari.com 91................... SBS Precission India Pvt.Ltd. .............................................................................. +91-33-32920078 ....................................enquiries@sbsindia.in ............................................................... www.sbsindia.in 12................... Schoeller Arca Time Solutions Ltd ...................................................................... +91-22-42119500 ....................................info@satmhs.com ...................................................................... www.satmhs.co, 145 ................. Schuler India Pvt Ltd .......................................................................................... +91-22-66800300 ....................................info@schularindia.com ............................................................. www.schulergroup.com 135 ................. Seamless Autotech Pvt Ltd.................................................................................. +91-2135-662431 ....................................info@seamlessautotech.com..................................................... www.seamlessautotech.com 103................. Sekisui Pilon ....................................................................................................... +91-80-26538257 ....................................indiasales@pilon.com.au .......................................................... www.pilon.com.au 85,92.............. Sellorap Manufacturing Pvt Ltd.......................................................................... +91-22-66750560 ....................................contact@sellowrap.com ............................................................ www.sellowrap.com 78,94 ............. Selvel Auto Traders ............................................................................................. +91-130-2243148.....................................senior@ndf.vsnl.net.in............................................................... www.senior-rubbers.com 57................... Servomax India Ltd. ............................................................................................ +91-40-44436666 ...................................dharmesh@servomax.net ......................................................... www.servomax.net 50 .................. Shavo Technologies Pvt Ltd. ............................................................................... +91-20-26059641 ....................................shavogroup@vsnl.com............................................................... www.shavogroup.com 76................... Shimadzu Analytical (I) Pvt. Ltd.......................................................................... +91-22-29204741.....................................info@shimadzu.in...................................................................... www.shimadzu.in 96 .................. SIAT Expo ............................................................................................................ ‘+91-20-30231350 ....................................siat2011@araiindia.com ............................................................ www.araiindia.com 15................... Siemens Ltd ......................................................................................................... +91-22-27623727 ....................................motors.in@siemens.com ........................................................... www.siemens.com/automotive-excellence 118,138 .......... Sigma Corporation India Ltdt.Ltd. ...................................................................... +91-11-42411600 .....................................sigma@sigmacorporation.com .................................................. www.sigmacorpoaration.com 144................. Smart Logistics Leadership Series ...................................................................... +91-22-30034650 ....................................prachi.mutha@infomedia18.in .................................................

22 .................. Sreelakshmi Traders ........................................................................................... +91-44-24343343 ....................................sreelakshmitraders@gmail.com ................................................ www.sreelakshmitraders.com 162................. Sridevi Tool Engineers Pvt Ltd ............................................................................ +91-250-2480293 ....................................sridevitools@vsnl.com ............................................................... www.sridevitools.com 81 .................. Starragheckert Machine Tools Pvt. Ltd............................................................... +91-80-42770600 ...................................purchaseindia@starragheckert.com ......................................... www.starragheckert.com 49................... State Bank Of India ............................................................................................. +91-1800112211 .......................................................................................................................................... www.statebankofindia.com 105................. Subros Ltd ........................................................................................................... +91-11-23414946 .....................................pmehra@subros.com................................................................. www.subroslimited.com 109................. SUPER SAVER ....................................................................................................... +91-22-30034650 ....................................b2b@infomedia18.in ................................................................. www.infomedia.in 137 ................. Syndicate Wiper Systems Pvt Ltd. ....................................................................... +91-22-42304230 ....................................marketing@syndicatewiper.com ............................................... www.syndicatewiper.com 142 ................. TAGMA ................................................................................................................. +91-22-28526876 ....................................diemould@tagmaindia.org ....................................................... www.tagmaindia.org 140................. Tata Motors Ltd. .................................................................................................. +91-22-66561820 ........................................................................................................................................ www.prima.tatamotors.com 58 .................. Techaids .............................................................................................................. +91-172-4379999 ....................................info@techaids.in ........................................................................ www.techaids.in 30 .................. Tech-Cast Mfg. Corp. ........................................................................................... +886-5-591-6351 .....................................sales@techcast.com.tw.............................................................. www.techcast.com.tw 97................... Teksons Pvt Ltd. .................................................................................................. +91-22-25340351 ....................................teksons@eth.net ........................................................................ www.teksonsradiators.com 18................... Titan Industries Limited ..................................................................................... +91-4344-664846 ...................................senthilm@titan.co.in ................................................................. www.titanautomation.in 88 .................. TMC Measuring Instruments Pvt Ltd. ................................................................. +91-22-24226394 ....................................info@tmcinstruments.com ........................................................ www.tmcinstruments.com 34 ................. Triveni Rubber .................................................................................................... +91-22-25471084 ....................................rohit.millns@trivenirubber.com................................................ www.trivenirubber.com 50,116 ............ Tubecraft............................................................................................................. +91-22-24113468 .....................................sales@corrtube.com 27................... TVS Srichakra Ltd ................................................................................................ +91-9902620088 .....................................prathap1234@yahoo.co.in ........................................................ www.tvstyres.com 59................... Tyrolit India Superabrasive Pvt. Ltd. .................................................................. +91-80-40953259....................................subrahmanya.kumar@tyrolit.com ............................................ www.tylolit.com 48 .................. United Steel & Structurals Pvt. Ltd. .................................................................... +91-44-42321801 ....................................admin@unitedstructurals.com.................................................. www.unitedstructurals.com 44 .................. Varroc Engineering Pvt Ltd. ................................................................................ +91-240-2556227 ....................................varroc.info@varrocgroup.com .................................................. www.varrocgroup.com 32................... VCA India............................................................................................................. +91-11-46518545.....................................admin@vca-india.com ............................................................... www.vca.gov.uk 75................... VE Commercial Vehicles Ltd. .............................................................................. +91-7292-402633 ........................................................................................................................................

87 .................. Victor Reinz India Pvt Ltd. .................................................................................. +91-2114-392100.....................................infovri@dana.com ..................................................................... www.victorreinz.in 79 .................. Walter Tools India Pvt. Ltd.................................................................................. +91-20-27104800 ....................................service.in@walter-tools.com ..................................................... www.walter-tools.com 29 .................. Yamazaki Mazak India Pvt Ltd. .......................................................................... +91-20-27351417 .....................................sudhir_patankar@mazakindia.com .......................................... www.mazak.com 28 .................. Zylog Plastalloys ................................................................................................. +91-2552-230898 ....................................sales@zylogplastalloys.com ...................................................... sales@zylogplastalloys.com

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158

Auto Monitor

PRODUCT INDEX

Product ........................................................................................................................................ pg no.

186 Series cylinder box....................................................................................................................................... 34 3d coordinate measuring machine .................................................................................................................... 31 5c indexers ......................................................................................................................................................... 39 Acc. Padel sensor assy. ....................................................................................................................................... COC Acid purifier ........................................................................................................................................................ 161 Actuators ............................................................................................................................................................ 17 Adapter sleeves................................................................................................................................................... 36 After coolers ....................................................................................................................................................... 97 Air ....................................................................................................................................................................... 120 Air chiller ............................................................................................................................................................ 67 Air gauges ........................................................................................................................................................... 52 Air springs ........................................................................................................................................................... 74 All geared radial drill machine........................................................................................................................... 48 Allgeared autofeed pillar drill machine ............................................................................................................. 48 Allgeared autofeed radial drill machine ............................................................................................................ 48 Aluminium casting ............................................................................................................................................. 13 Aluminium endmills ........................................................................................................................................... 70 Aluminium processing........................................................................................................................................ 145 Analytical instruments ....................................................................................................................................... 76 Apfc panels ......................................................................................................................................................... 57 Appliance compounds ........................................................................................................................................ 28 As-interface systems ........................................................................................................................................... 113 Auto electric accessories .................................................................................................................................... 62 Auto gauging stations ......................................................................................................................................... 52 Auto mation mfrs ............................................................................................................................................... 39 Auto parts ........................................................................................................................................................... 19,20,BC Autocoding ......................................................................................................................................................... 33 Automatic painting system................................................................................................................................. 111 Automation......................................................................................................................................................... 64 Automation & storage system ............................................................................................................................ 113 Automation and test equipment ........................................................................................................................ 55 Automotive components manufacturer............................................................................................................. 2 Automotive dealership excellence awards ......................................................................................................... 102 Automotive electrical components .................................................................................................................... 44 Automotive products.......................................................................................................................................... 43 Automotive wire harness.................................................................................................................................... 132 Automtive compounds ....................................................................................................................................... 28 Axles ................................................................................................................................................................... 19,BC Axles ................................................................................................................................................................... 19 Backgeared autofeed radial drill ....................................................................................................................... 48 Backgeared fine feed machine........................................................................................................................... 48 Balance systems ................................................................................................................................................. 91 Ball bearings....................................................................................................................................................... 42,89 Basic frames ....................................................................................................................................................... 119 Bearings .............................................................................................................................................................. 42,45,89 Bearings for automotive..................................................................................................................................... 24 Beoplast- thermplastic elastomer & vulcanizates ............................................................................................. 28 Bgie suspension brg............................................................................................................................................ 99 Billet shearing machines .................................................................................................................................... 20 Biodiesel ............................................................................................................................................................. 17 Blanking lines ..................................................................................................................................................... 145 Blow film & plastic molded components ........................................................................................................... 85,92 Blow moulds ....................................................................................................................................................... 162 Blue bucks .......................................................................................................................................................... 119 Bodywork sealing systems.................................................................................................................................. 129 Bolts.................................................................................................................................................................... BC Brake linings ....................................................................................................................................................... 51 Brake parts ......................................................................................................................................................... 66 Braking ............................................................................................................................................................... 13 Building automation .......................................................................................................................................... 64 Burs..................................................................................................................................................................... 70 Bus a/c ................................................................................................................................................................ 105 Bushes ................................................................................................................................................................ 118,138 C frame power press ........................................................................................................................................... 20 Cable compounds ............................................................................................................................................... 28 Cables for bus systems........................................................................................................................................ 113 Cables handling & processing systems ............................................................................................................... 113 Cables scanps...................................................................................................................................................... 113 Calendering ........................................................................................................................................................ 58 Calibration masters ............................................................................................................................................ 52 Cam shaft / crank shaft grinding machines ....................................................................................................... 40 Camera ............................................................................................................................................................... 30 Capacitive and magnetic sensors ....................................................................................................................... 113 Capacitors discharge ignitors ............................................................................................................................. 132 Car carrier ........................................................................................................................................................... 71 Car carrier trailer ................................................................................................................................................ 135 Car paints............................................................................................................................................................ 90 Car polish............................................................................................................................................................ 90 Carbide burrs ...................................................................................................................................................... 70 Carbide routhing endmills ................................................................................................................................. 70 Carbide tools ...................................................................................................................................................... 70 Castings forgings ................................................................................................................................................ 20 Ced coating machines......................................................................................................................................... 64 Ced/ktl coatings .................................................................................................................................................. 4 Cellular foam products ....................................................................................................................................... 85,92 Centreless grinders ............................................................................................................................................. 155 CertiFICation and training .................................................................................................................................. 131 CertiFICation services for vehicles and vehicle parts ......................................................................................... 32 C-frame hydraulic press ...................................................................................................................................... 28 Charge air cooler ................................................................................................................................................ 97 Chassis ................................................................................................................................................................ 66,77 Chassis components ........................................................................................................................................... 66 Checking gauges ................................................................................................................................................. 119 Chemical etching ................................................................................................................................................ 69 Chemlok coating machines ................................................................................................................................ 64 Chrome ............................................................................................................................................................... 161 Clamps ................................................................................................................................................................ 110,122 Clutch bearings ................................................................................................................................................... 42 Clutch housing .................................................................................................................................................... 34 Clutch release bearings ...................................................................................................................................... 99 Cmms .................................................................................................................................................................. 88 CNC ..................................................................................................................................................................... 53,133 CNC cutting machines......................................................................................................................................... 64 CNC hmcs ............................................................................................................................................................ 53,133 CNC laser cutting machines ................................................................................................................................ 64 CNC lathe ............................................................................................................................................................ 39 CNC lathes ........................................................................................................................................................... 65 CNC machines ..................................................................................................................................................... 100,53,133 CNC oval turning centers .................................................................................................................................... 53,133 CNC oxy fuel cutting machines ........................................................................................................................... 64 CNC plasma cutting machines ............................................................................................................................ 64 CNC turn mill centers.......................................................................................................................................... 53,133 CNC turning center ............................................................................................................................................. 53,133 CNC vertical machining center ........................................................................................................................... 53,133 CNC/vmc machines ............................................................................................................................................. 107 CNC/vmc machines ............................................................................................................................................. 29 Cng dispenser probe o-rings .............................................................................................................................. 34 Cng solutions ...................................................................................................................................................... 50,116 Cng-nrv o- rings .................................................................................................................................................. 34 Coating machines ............................................................................................................................................... 64 Coating plants..................................................................................................................................................... 64 Coating qquipment............................................................................................................................................. 147 Coating systems .................................................................................................................................................. 64 Cold form c & z purlins ....................................................................................................................................... 48 Cold forming machines ...................................................................................................................................... 55 Combination switches ........................................................................................................................................ 132 Combined drills & countersinks ......................................................................................................................... 70 Commercial vehicle tyres ................................................................................................................................... 60 Commercial vehicles........................................................................................................................................... 41,75,140 Compact chiller .................................................................................................................................................. 67 Compact measurement modules ....................................................................................................................... 33 Compaction & concreting equipment. ............................................................................................................... 63 Composite processing equipment ...................................................................................................................... 55 Compression springs .......................................................................................................................................... 5 Compressors ....................................................................................................................................................... 105 Condensers ......................................................................................................................................................... 105 Connectors accessories....................................................................................................................................... 113 Contour evaluation in single trace ..................................................................................................................... 14 Cooling module .................................................................................................................................................. 105 Copper ................................................................................................................................................................ 161

FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

1 - 31 January 2011

Product ........................................................................................................................................ pg no.

Corporate – proud to be indian ......................................................................................................................... 49 Corrugated tubes ................................................................................................................................................ 50,116 Countersinks ....................................................................................................................................................... 70,BIC Crankshaft machines .......................................................................................................................................... 55 Crankshafts......................................................................................................................................................... 19 Crimp contact & tools ......................................................................................................................................... 113 Cubings ............................................................................................................................................................... 119 Custom-made cables .......................................................................................................................................... 113 Cutting machines................................................................................................................................................ 64 Cutting tools ....................................................................................................................................................... 58,61,79 Cv joint machines ............................................................................................................................................... 55 Cylindrical grinders ............................................................................................................................................ 65 Cylindrical roller bearings .................................................................................................................................. 42 Dacromet ............................................................................................................................................................ 110 Data cables ......................................................................................................................................................... 113 Deburring & superfinishing................................................................................................................................ 46 Decimal endmills................................................................................................................................................ 70 Deep drawing press ............................................................................................................................................ 28 Dehumidified air dryer....................................................................................................................................... 67 Diamond tools .................................................................................................................................................... BIC Die casting dies................................................................................................................................................... 101 Die spotting press ............................................................................................................................................... 28 Die tryout press .................................................................................................................................................. 28 Die-casting.......................................................................................................................................................... 59 Dies ..................................................................................................................................................................... 59 Dies & moulds .................................................................................................................................................... 117 Diesel cold-starting systems............................................................................................................................... 87 Diesel engines (10-1000hp) ................................................................................................................................ 63 Diesel/kerosene engines. Power sprayer ........................................................................................................... 63 Dip spin coating machines ................................................................................................................................. 64 Distribution transformer .................................................................................................................................... 57 Dollies (trollies)................................................................................................................................................... 12 Drill machine ...................................................................................................................................................... 48 Drilling tools ....................................................................................................................................................... BIC Drills ................................................................................................................................................................... 70 Dvr ...................................................................................................................................................................... 30 E-coatings solutions ........................................................................................................................................... 4 Ecu interface modules ........................................................................................................................................ 33 Ecubes................................................................................................................................................................. 119 Effluent treatments ............................................................................................................................................ 139 Egr valve ............................................................................................................................................................. COC Electric horn ....................................................................................................................................................... 62 Electric motor lamination systems..................................................................................................................... 145 Electric vehicles .................................................................................................................................................. 10 Electronic brake systems .................................................................................................................................... 66 Electronic control unit........................................................................................................................................ COC Electroplating chemicals .................................................................................................................................... 139,161 Electroplating plants .......................................................................................................................................... 161 Embossing rolls................................................................................................................................................... 58 Engine block for automobile .............................................................................................................................. 34 Engine valves ...................................................................................................................................................... 30,51 Engineering Expo- Chennai ................................................................................................................................ 6,106,114 Engineering plants ............................................................................................................................................. 139 Envirnmental monitoring systems ..................................................................................................................... 76 Environmental .................................................................................................................................................... 42 Equipment & services ......................................................................................................................................... 117 Equipment for plastic processing ....................................................................................................................... 21 Etp....................................................................................................................................................................... 161 Ex series .............................................................................................................................................................. 53,133 Exhibition - hitech manufacturing show............................................................................................................ 146 Extension springs ............................................................................................................................................... 5 Fabric reinfrced diaphragms .............................................................................................................................. 34 Factory automation ............................................................................................................................................ 26,64 Failure analysis ................................................................................................................................................... 17 Five axis machining centers and four axis horizontal machining centers ......................................................... 81 Fixtures ............................................................................................................................................................... 110 Floor automation ............................................................................................................................................... 98 Fluidized bed coating machines. ....................................................................................................................... 64 Foams for automotive interiors ......................................................................................................................... 103 Fomable small containor ................................................................................................................................... 12 Fombles small crates .......................................................................................................................................... 12 Forging press ...................................................................................................................................................... 20,28 Forgings .............................................................................................................................................................. 19 Form&cylindercity testers .................................................................................................................................. 31 Friction drop hammer ........................................................................................................................................ 155 Friction drop hammers ...................................................................................................................................... 20 Friction screw press ............................................................................................................................................ 20 Front axles .......................................................................................................................................................... BC Fuel & hydraulic filters ....................................................................................................................................... 120 Fuels- diesel ........................................................................................................................................................ 17 Gantry automation ............................................................................................................................................. 98 Gases ................................................................................................................................................................... 17 Gear hobbing machines ..................................................................................................................................... 40 Geomet coatings ................................................................................................................................................. 110 Glide coating machines ...................................................................................................................................... 64 Gold .................................................................................................................................................................... 161 Granulator .......................................................................................................................................................... 67 Grinder................................................................................................................................................................ 67 Grinding machines ............................................................................................................................................. 40,59 Grinding tools for hard materials ....................................................................................................................... 59 Grip pliers ........................................................................................................................................................... 110 Grippers .............................................................................................................................................................. 125 Gun drills ............................................................................................................................................................ BIC H frame power press .......................................................................................................................................... 20 Halogen lamps.................................................................................................................................................... 62 Hammer .............................................................................................................................................................. 20,155 Hardness tester ................................................................................................................................................... 88 Hardware in loop(hil) system ............................................................................................................................. 33 Hcv cargo body ................................................................................................................................................... 71 Health & safety (ehs) consulting ......................................................................................................................... 42 Heat exchanger machines .................................................................................................................................. 100 Heavy duty CNC .................................................................................................................................................. 56 Heavy industrial steel builings ........................................................................................................................... 48 Height gauges ..................................................................................................................................................... 88 Hemming press................................................................................................................................................... 28 High carbon ........................................................................................................................................................ 89 High performance drills ..................................................................................................................................... 70 High performance endmills ............................................................................................................................... 70 Hmc horizontal spindle ...................................................................................................................................... 39 Hollow bars......................................................................................................................................................... 37 Hopper dryer ...................................................................................................................................................... 67 Hopper loader .................................................................................................................................................... 67 Horizontal & vertical machining centers ........................................................................................................... 40 Horizontal boring machines .............................................................................................................................. 55 Horizontal CNC machines ................................................................................................................................... 53,133 Horizontal handel clamp ................................................................................................................................... 110 Horizontal machining center ............................................................................................................................. 53,100,133 Horizontal turning centers ................................................................................................................................. 55 Hose clamp ......................................................................................................................................................... 158 Hot forming press ............................................................................................................................................... 28 Hot,cold & warm forged machined parts .......................................................................................................... 44 Hvac blower & fan systems................................................................................................................................. 66 Hvacs & evaporators .......................................................................................................................................... 105 Hydroforming ..................................................................................................................................................... 145 Hydroforming press ............................................................................................................................................ 28 Hydrolic brake systems....................................................................................................................................... 66 Ic engine valves .................................................................................................................................................. 44 IdentiFICation systems ....................................................................................................................................... 113 Imaging & vision systems ................................................................................................................................... 64 Inductive............................................................................................................................................................. 113 Industrail connectors ......................................................................................................................................... 113 Industrial metrology .......................................................................................................................................... 31 Industrial robots................................................................................................................................................. 121 Industrial scientiFIC instruments ....................................................................................................................... 76 Injection & blow molds specialist ...................................................................................................................... 25 Injection moulds ................................................................................................................................................ 162 Instrumentation made cables ............................................................................................................................ 113 Instrunment pannels .......................................................................................................................................... 119 Isolation transformer ......................................................................................................................................... 57 Jigs ...................................................................................................................................................................... 110

1 - 31 January 2011

PRODUCT INDEX

Product ........................................................................................................................................ pg no.

Jobber length drills............................................................................................................................................. 70 King pin bearing ................................................................................................................................................. 99 Kx series.............................................................................................................................................................. 53,133 Kxg series............................................................................................................................................................ 53,133 Laboratory press................................................................................................................................................. 28 Laser shaping...................................................................................................................................................... 59 Laser systems ...................................................................................................................................................... 145 Laser welding machines ..................................................................................................................................... 40 Lathe machines .................................................................................................................................................. 100 Lcv container ...................................................................................................................................................... 71 Lean assembly lines............................................................................................................................................ 18 Lightweight diesel engines for automotive applications .................................................................................. 63 Lightweight petrol .............................................................................................................................................. 63 Linear assembly lines ......................................................................................................................................... 18 Lock nuts ............................................................................................................................................................ 36 Lock washers ...................................................................................................................................................... 36 Machine tools ..................................................................................................................................................... 54 Machinery steel .................................................................................................................................................. 9 Machines for grinding ........................................................................................................................................ 46 Marking solutions ............................................................................................................................................... 123 Marpreset ........................................................................................................................................................... 14 Marsurf ld 120 roughness................................................................................................................................... 14 Material handling ............................................................................................................................................... 115 Measurement...................................................................................................................................................... 14 Measurements of automotive exterior & interiors systems ............................................................................... 155 Measuring fixtures .............................................................................................................................................. 119 Measuring instruments ...................................................................................................................................... 88 Mechanical press ................................................................................................................................................ 28 Metal cutting tools ............................................................................................................................................. 93 Metal finishing solutions .................................................................................................................................... 139 Metfin compounds ............................................................................................................................................. 155 Metric endmills ................................................................................................................................................... 70 Micro measurement modules ............................................................................................................................ 33 Milling cum drilling machine ............................................................................................................................. 48 Milling cutters..................................................................................................................................................... BIC Model based design............................................................................................................................................ 33 Modular tooling system ...................................................................................................................................... BIC Motion controls .................................................................................................................................................. 17 Motion systems ................................................................................................................................................... 17 Motors & servo motors ....................................................................................................................................... 17 Mould temperature controller ........................................................................................................................... 67 Moulds & moulded parts.................................................................................................................................... 25 Mounts ................................................................................................................................................................ 118,138 Mrfs auto control cables..................................................................................................................................... 80 Multi gauging systems ........................................................................................................................................ 31 Multi level car parks ........................................................................................................................................... 48 Mx series ............................................................................................................................................................. 53,133 N/c spotting drills ............................................................................................................................................... 70 Nano compounds ............................................................................................................................................... 28 Needle roller bearings........................................................................................................................................ 42 Nickel .................................................................................................................................................................. 161 Non-contact systems .......................................................................................................................................... 88 Nuts .................................................................................................................................................................... 36, BC Nuts .................................................................................................................................................................... 36 Nx series ............................................................................................................................................................. 53,133 Oil ....................................................................................................................................................................... 120 Oil coolers ........................................................................................................................................................... 97 Opto-electropnic systems................................................................................................................................... 31 Paint circulation system ..................................................................................................................................... 111 Paint pumps ....................................................................................................................................................... 111 Paint shop equipments ...................................................................................................................................... 64 Paint shop machines .......................................................................................................................................... 64 Pallets ................................................................................................................................................................. 12 Parkingsensor ..................................................................................................................................................... 30 Pcb assembly ...................................................................................................................................................... 54 Pcb laminating press .......................................................................................................................................... 28 Petrol & fuel oils ................................................................................................................................................. 17 Photoelectric sensors ......................................................................................................................................... 113 Physical testing & measuring equipments ......................................................................................................... 76 Pillar drilling machines ...................................................................................................................................... 48 Pistons & pistons rings ....................................................................................................................................... 35 Planning machines ............................................................................................................................................. 56,155 Plano millers ...................................................................................................................................................... 155 Plano milling machines ...................................................................................................................................... 56 Plastic moulded components............................................................................................................................. 44 Plywood press .................................................................................................................................................... 28 Pneumatics & hydraulics-cylinders.................................................................................................................... 125 Polishing ............................................................................................................................................................. 46 Poly carbonate sheets ........................................................................................................................................ 48 Polymer conveyer belt........................................................................................................................................ 67 Polyurethane exhibition .................................................................................................................................... 149 Portable hardeness testers................................................................................................................................. 88 Powder coating system....................................................................................................................................... 111 Power chucking cylinders................................................................................................................................... 65 Power conditioner .............................................................................................................................................. 57 Power saver ........................................................................................................................................................ 57 Power steering systems ...................................................................................................................................... 51 Power tiller ......................................................................................................................................................... 63 Pre engineered steel builings............................................................................................................................. 48 Pre fab shelters ................................................................................................................................................... 48 Pre tereatment systems ...................................................................................................................................... 64 Precision fabrication works................................................................................................................................ 110 Precision steel .................................................................................................................................................... 59 Press tools........................................................................................................................................................... 101 Pressure regulators............................................................................................................................................. 125 Profile projectors................................................................................................................................................ 16,88 Profilers and gantry machines - 3 & 5 axis......................................................................................................... 55 Projects (energy) ................................................................................................................................................. 57 Protective-conduit system ................................................................................................................................. 113 Pu plural component equipment....................................................................................................................... 86 Pull action clamp ............................................................................................................................................... 110 Pumps ................................................................................................................................................................. 82,83 Pumpsets and power reapers............................................................................................................................. 63 Quality steel........................................................................................................................................................ 9 Races ................................................................................................................................................................... 99 Rader systems ..................................................................................................................................................... 17 Radial drill machine ........................................................................................................................................... 48 Radiators ............................................................................................................................................................ 97 Rapid prototyping tools for automotive software ............................................................................................. 33 Reamers .............................................................................................................................................................. BIC Rear axles ........................................................................................................................................................... BC Recovery units .................................................................................................................................................... 161 Regulator seals ................................................................................................................................................... 34 Research & certiFICation .................................................................................................................................... 95 Residential steel houses ..................................................................................................................................... 48 Resistor assembly. .............................................................................................................................................. 132 Robot system ...................................................................................................................................................... 67 Robotic assembly lines & robotic weld cells ...................................................................................................... 18 Robotic automation............................................................................................................................................ 98 Robots................................................................................................................................................................. 121 Rolled rings......................................................................................................................................................... 45 Roof vent ............................................................................................................................................................ 48 Roofing & cladding sheets .................................................................................................................................. 48 Rotary assembly machines ................................................................................................................................. 18 Rotary encoders.................................................................................................................................................. 113 Rotary tables ...................................................................................................................................................... 39 Roundness .......................................................................................................................................................... 31 Roundness measuring machines........................................................................................................................ 52 Rubber parts for automobile industry ............................................................................................................... 78,94 Scada & dcs implimentaion ............................................................................................................................... 64 Screw bodies ....................................................................................................................................................... 119 Sealer dispensing system.................................................................................................................................... 111 Sealing & engine products ................................................................................................................................. 87 Seat assemblies .................................................................................................................................................. 44 Seat belt systems ................................................................................................................................................ 51 Self adhesive tapes ............................................................................................................................................. 22 Sensorbox ........................................................................................................................................................... 66 Sensories............................................................................................................................................................. 66 Sensors................................................................................................................................................................ 17,113 Servo drives ........................................................................................................................................................ 17

Auto Monitor

159

Product ........................................................................................................................................ pg no.

Servo stabilizer (air cooled) ................................................................................................................................ 57 Sheet metal frming............................................................................................................................................. 145 Shipyard press .................................................................................................................................................... 28 Silver ................................................................................................................................................................... 161 Sleeves ................................................................................................................................................................ 36 Smart Logistics Leadership Series ...................................................................................................................... 144 Smc press ............................................................................................................................................................ 28 Solenoid valves ................................................................................................................................................... 125 Solid carbide drills.............................................................................................................................................. 93 Solid carbide drills with ic .................................................................................................................................. 93 Solid carbide mills .............................................................................................................................................. 93 Solid carbide reamers ........................................................................................................................................ 93 Solid carbide reamers with ic ............................................................................................................................. 93 Solid carbide special drills ................................................................................................................................. 93 Solid carbide special mills .................................................................................................................................. 93 Solid carbide special reamers ............................................................................................................................ 93 Soses & tubes ...................................................................................................................................................... 105 Spade drills ......................................................................................................................................................... 70 Special machines ................................................................................................................................................ 55 Special purpose machine ................................................................................................................................... 101 Special purpose machines.................................................................................................................................. 56,117 Speciality chemicals ........................................................................................................................................... 127,139 Spherical roller bearings .................................................................................................................................... 42 Spirac cables ....................................................................................................................................................... 113 Spl ball bearings ................................................................................................................................................. 99 Spm’s machines .................................................................................................................................................. 100 Spray equipments............................................................................................................................................... 84 Spray guns .......................................................................................................................................................... 111 Spray painting equipment.................................................................................................................................. 90 Spraying equipment ........................................................................................................................................... 86 Squeezing rolls ................................................................................................................................................... 58 Stackable crates .................................................................................................................................................. 12 Stack-nest crate .................................................................................................................................................. 12 Stainless steel ..................................................................................................................................................... 89 Stainless steel fasteners ..................................................................................................................................... 141 Standard endmills .............................................................................................................................................. 70 Steel balls............................................................................................................................................................ 45,89 Steering bearings ................................................................................................................................................ 99 Straight flute drills .............................................................................................................................................. 70 Straight line action clamp .................................................................................................................................. 110 Straightening machines...................................................................................................................................... 155 Strip steel ............................................................................................................................................................ 9 Structural floor decking sheets .......................................................................................................................... 48 Stub length drills ................................................................................................................................................ 70 Super finishing film - variofilm........................................................................................................................... 16 Super saver ......................................................................................................................................................... 109 Surface roughnesstester ..................................................................................................................................... 88 Suspension.......................................................................................................................................................... 13 Sx series .............................................................................................................................................................. 53,133 Taper roller bearings .......................................................................................................................................... 42 Taps..................................................................................................................................................................... BIC Telecom .............................................................................................................................................................. 57 Test systems ........................................................................................................................................................ 17 Testing machine ................................................................................................................................................. 46 Texturing............................................................................................................................................................. 69 Thread gauges .................................................................................................................................................... 88 Three wheelers ................................................................................................................................................... 41 Toggle action clamp ........................................................................................................................................... 110 Toggle press ........................................................................................................................................................ 110 Toll compounding .............................................................................................................................................. 28 Tool bits .............................................................................................................................................................. 9 Tool presetters.................................................................................................................................................... 14 Tool steel ............................................................................................................................................................ 9 Torsion springs ................................................................................................................................................... 5 Total data management ..................................................................................................................................... 14 Total integrated automation .............................................................................................................................. 15 Total water environment solutions .................................................................................................................... 68 Transmission....................................................................................................................................................... 13,118,138 Transmission cylinder box .................................................................................................................................. 34 Transmission housing ......................................................................................................................................... 34 Truck bodies ....................................................................................................................................................... 71 Truck tyres .......................................................................................................................................................... 23 Tube bending technology................................................................................................................................... 72,73 Turning machines ............................................................................................................................................... 40 Turnkey ............................................................................................................................................................... 57 Turrets ................................................................................................................................................................ 65 Two wheeler tyres............................................................................................................................................... 23 Tyre chanding accessories .................................................................................................................................. 155 Tyre repair tools.................................................................................................................................................. 155 Tyre service tools ................................................................................................................................................ 155 Tyres.................................................................................................................................................................... 23,27 Ultrasonic sensors .............................................................................................................................................. 113 Ups ...................................................................................................................................................................... 57 Uss univent ......................................................................................................................................................... 48 Vaccum pump ..................................................................................................................................................... COC Valve seats .......................................................................................................................................................... 34 Valves.................................................................................................................................................................. 30 Vehicle interiors ................................................................................................................................................. 47 Ventilators .......................................................................................................................................................... 22 Vertical handle clamp ........................................................................................................................................ 110 Vertical line series .............................................................................................................................................. 53,133 Vertical machining center .................................................................................................................................. 65,100 Vertical machining centers 3 & 5 axis ................................................................................................................ 55 Vertical turning centers ...................................................................................................................................... 55 Vertical turning lathe ......................................................................................................................................... 56 Vision inspection systems .................................................................................................................................. 18 Vision systems .................................................................................................................................................... 88 Vmc vertical machines ....................................................................................................................................... 39 Vmc-linear series ................................................................................................................................................ 53,133 Vse flowmeters ................................................................................................................................................... 7 Washers............................................................................................................................................................... 36 Waste recovery system ....................................................................................................................................... 139 Waterjet cutting .................................................................................................................................................. 58 Welding solution................................................................................................................................................. 117 Wheel alignment accessories ............................................................................................................................. 155 Wheel balancing accessories .............................................................................................................................. 155 Wheel bearings ................................................................................................................................................... 42 Wheel hub units ................................................................................................................................................. 42 Wiper arms & blades .......................................................................................................................................... 137 Wire forms .......................................................................................................................................................... 5 Wire harness ....................................................................................................................................................... 54 Wireless............................................................................................................................................................... 30 Withdrawal sleeves ............................................................................................................................................. 36 Wobble bearings ................................................................................................................................................. 99

160

Auto Monitor

THE OTHER SIDE

1 - 31 January 2011

Getting Personal

In Person

Adil Mohamed, Senior Business Development Manager (Automotive) – India, Australian Government / Australian Trade Commission

Adil Mohamed is the Government of Australia’s representative in India for the Automotive Industry under the Australian Government’s ‘New Car Plan for Greener Future’. He is responsible for promoting Australian automotive exports, investments and migration into the Indian market and also attracts Indian investments into the Australian automotive industry.

With an experience of about 14 years in Indian industry, and nearly six years in advising and facilitating Australian businesses in India, Adil Mohamed is arguably one of Australia’s senior experts of the automotive industry in India. He also led Australia’s industry strategy in South Asia for emerging sectors and infrastructure, building & construction industry sectors and has handled several trade delegations.

Some of Adil’s recent achievements include leading a successful Australian automotive mission to India in Feb 2010 and during the last 15 months has assisted nearly 70 Australian automotive components and aftermarket companies for achieving success and doing business in Indian market.

Adil is a Mechanical Engineer and an MBA in Marketing & Finance and a qualified e-business professional. He has a built a track record in the areas of International Marketing, Strategic Business Development and Program Management. His earlier work experience was with the auto component division of Ford Motor Company (now known as Visteon Corporation), where he was instrumental in developing and winning non-Ford business for Visteon Corporation and managed global customer accounts of Indian, American, European, Japanese and Korean OEM’s and new vehicle program development. Adil likes to travel and is highly passionate about music, cars and his career.

If not in the auto sector, where would Mr Mohamed be?

Perhaps doing business in the clean and green technologies for infrastructure, building and construction sectors.

What vehicle do you drive? What do you dream of driving?

Toyota Corolla and dream of driving Bugatti Veyron 16.4 Grand Sport Your most recent indulgence...

Apple’s iPad with Wi-Fi & 3G What are you currently reading?

I read two or three books at a time. I’m currently reading ‘The Five People You Meet in Heaven’ [a novel about how every person on earth matters] and ‘Winning’ by Jack Welch and Suzy Welch.

Illustration: Sachin Pandit

What is Mr Mohamed doing when not talking automotive industry?

Analysing success stories of Indian corporates especially automotive companies and their stock price movements.

Outdoor activity you would miss office for...

Attend a training course on professional development and spending time with my son.

Where did you go for your last holiday?

Maiden visit to the holy cities of Mecca and Madinah in the Kingdom of Saudi Arabia You get angry when...

Anything that lacks perfection and accuracy irritates me.

I am a good and soft natured guy, I’ve never wished anybody harm. I get angry when people take advantage of me.

What would you like to change about yourself?

Try to continuously improve and excel in my professional field, help others and contribute to the society.

Best thing to have happened to you...

Hard work and dedication came from my father, he taught me that if you want something in life you have to work for it and no one gives it to you on a plate. So hard work and focus breeds success at all levels. My mother gave me strong values taught me to love life to the maximum and be truthful and upfront and that has taught me so much and has been my saviour all through my times.

Regn. No. MH/MR/WEST/20/2009-2011. RNI No. MAHENG/2000/11414 WPP Licence No: MR/Tech/WPP-269/WEST/09-11 Licenced to post without pre-payment at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001.

Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month

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